Many trustees are unaware of rules brought into place by HM Revenue and Customs which require most trusts to be registered with the Trust Registration Service.  This includes both trusts created now and also ongoing trusts created in the past.

Therefore, many trusts which have been in existence for a long time now need to be registered.  Many trustees incorrectly believe that an existing trust which is not taxable does not need to be registered however in most instances this is incorrect.

The trustees are required to provide HM Revenue & Customs with certain information about:

• The trustees
• The settlor of the trust
• The beneficiaries of the trust
• The assets held in the trust

It is a trustee’s legal responsibility to register a trust and if a trust is not registered, HM Revenue & Customs have the discretion to charge penalties.  Also, trustees may have difficulties in dealing with a trust in the future, either when changes need to be made to the trust such as a change of trustee or a change in the assets in the trust.  If a trust is not registered it is also likely that there will be delays and unnecessary complications when a trust comes to an end.

Our private client team would be happy to provide assistance with the registration of a trust with the Trust Registration Service.  If you require such assistance, please contact our private client department on 01226 210000.