INFORMATION FOR TRUSTEES OF WILL TRUSTS, LIFETIME TRUSTS AND LIFE INSURANCE TRUSTS

If you are a trustee of a Discretionary Trust you are responsible for carrying out the wishes of the Settlor, for keeping records and reporting any tax due. For families where a Discretionary trust has been set up to avoid inheritance tax on the family savings, home and business assets or to care for a disabled child, there will be at least two trustees.

The Responsibility of Trustees

Trustees are responsible for:

• Ensuring the wishes of the Settlor (person making the trust) are carried out and should have the Trust Deed or Will with Trust Clause and any Letters to the Trustees for guidance.
• Informing the Inland Revenue that a trust has been created.
• Ensure any investments are made with due care and diligence.
• Passing on assets or capital to the beneficiaries.
• Distributing income to the beneficiaries.
• Making and documenting loans to beneficiaries. (Typically this will be a share in property which has to be passed to a surviving spouse in return for an IOU to protect that property from Creditors or IHT.)
• Keeping financial records and minuting trustee meetings.
• Completing and sending back any tax return issued to you.
• Paying any tax due by the trust.
• Supplying vouchers to the beneficiaries to show how much income they have received from the trust in the tax year and how much tax the trustees have deducted. Beneficiaries, may be able to claim this tax back.

You can get further information on the tax rules at
www.hmrc.gov.uk/pdfs/ir152.htm#2

For a simple Discretionary Will Trust where everything is passed to a surviving partner in return for an IOU, you may wish to do the paperwork yourself. However, we can provide this service for you if you have a busy life or prefer not to.

Our TRUSTEE ADVISORY SERVICE is ideal for the busy person who has no experience of this area and who has been appointed as a trustee to a trust created by a friend or relative. We provide ongoing advice to trustees and keep you informed of all your responsibilities, complete the annual tax return for the trust, complete the survivors’ tax return and provide all the forms and paperwork.

Costs start from around £180.00 pa. However do call us on 0800 7816743 or email us for a free estimate.