The concept of a trust is simple: assets are gifted to the trustees to manage for the benefit of another person or a group of people. However, all trusts require some level of formal administration and management.
The administrative burden falls on the current trustees who must keep detailed records of all decisions and actions taken in relation to the trust.
At Timbrell Law, we support trustees to understand what the role of a trustee involves, what the terms of the trust require and the powers they have to manage the trust fund.
How Do We Support Trustees?
We can help with the following trust administration tasks either on a one-off basis or through dedicated ongoing support
- Providing advice on the terms of the trust
- Providing advice on trustee duties, responsibilities and powers
- Drafting change of trustee deeds
- Recording distributions to beneficiaries
- Preparing trustee minutes and resolutions
- Drafting annual trust accounts
- Completion and submission of trust tax returns and inheritance tax returns
- Liaising with third parties such as accountants, investment managers, banks and property managers
- Administration of trustee bank accounts
Timbrell Law Solicitors are here to help you administer your trust with ease. If you would like support, please don't hesitate to get in touch. We are available on 01242 420744, or you can use our contact form to arrange a free callback at a time to suit you.
Frequently Asked Questions - Trust Management
Which taxes do trustees have to consider?
Most trusts will become subject to UK tax while they hold assets in the UK. The tax treatment will depend on what type of trust it is and how it was set up. The trust may have to pay inheritance tax, income tax, capital gains tax and if it holds property or land, stamp duty land tax. It is the responsibility of the trustees to declare and pay any tax due.
A beneficiary receiving an income distribution may also have declare the receipt of income on their own tax return.
What are trust accounts?
Trustees are under a duty to produce records of trust assets under their control. Trust accounts should be prepared annually on the anniversary of the trust’s creation or according to the tax year. They should detail how the capital position has changed over the year, the income received, expenses and taxes paid and any distributions from the trust.
What happens if a trustee wants to retire or dies?
If a trustee wants to retire, they can do so. This is usually subject to the proviso that there are at least two remaining trustees, or the retiring trustee finds a replacement. If you need support, we can prepare the relevant documents to help change trustees.
If a trustee dies, the trust can continue to be administered by a sole surviving trustee. Although, we usually recommend that the survivor appoints a co-trustee to act alongside them.
Still Looking For More Information?
If you need more information on trust administration and the responsibilities of trustees, then why not read some of our related blog posts for additional helpful insights.
