Robert Cartmell explains the latest Trust Registration requirements
Are you a Trustee of a Trust? If so, you are already no doubt aware of the 2022 requirements as to the Trust being required to be ‘registered’ at the Trust Registration Service (TRS). All active Trusts were required to be registered with the TRS as at the 1st September 2022 or thereafter within 90 days of creation.
Are there any further requirements? I, Robert Cartmell, as a trustee myself of many discretionary trusts and life interest trusts have had to review what else is necessary in terms of ongoing registration requirements.
I am often asked how to manage a ‘dormant’ trust, such as a discretionary trust where the value has been loaned to the beneficiaries for lifetime or a life interest trust (or IPDI) where the spouse, for example, is the main recipient of a property or asset for life. In those cases, there is a basic level of trust management requirement. But many people are not aware of ongoing TRS registration responsibilities for other Trust assets.
Trust Registration 2023
TRS regulations are being expanded from 1 April 2023.
To be able to carry out some financial transactions involving a Trust, at the point when the request comes in, financial advisers or trustees must provide financial providers with evidence the trust is registered with the TRS and proof of registration (the confirmation document or other registration information).
This must be an up to date entry of the Registration – and therefore it is essential that Trustees keep the TRS register up to date with any changes in details, in particular:
- The Trustees details;
- The Beneficiaries’ details;
- The nature of the Trust (if changed);
Financial providers carry out a ‘discrepancy check as against the TRS register’ relating to
- New business applications
- Top ups
- Bereavement claims
- Surrenders
- Maturity payments
- Setting up a new withdrawal
- Changing a bank account for withdrawal payments
Likewise: Trustees need to give notice to the financial provider for the Trust of any of the following:
- Assignments/transfers into trust
- Replacing Trustees
- Bereavement of trustee – Personal Representatives
- Change of ownership
- Change of a flexible trust to an absolute trust
- Trust changes in nature so now having to register with TRS
If the trust is to be closed before the transaction takes place, proof of registration will need to be obtained before the trust is closed, because it’s not possible to obtain this afterwards.
Maintaining the TRS Register
The TRS requirements are also to maintain an up to date register. My advice is to ensure this is done at least on an annual review basis as part of a standard routine process for Trust management.
If you would like help or advice from Robert Cartmell on the issues raised in this article, please get in touch. Email Robert Cartmell Consulting at info@robertcartmell.co.uk to make an enquiry or arrange a discussion.