According to recent reports, the Trust Registration Service has extended the deadline to report trusts. It has also opened to non-taxable trusts to register. All relevant trusts that were in existence on or after 6th October 2020 must be registered by 1st September 2022. For trusts created after 1st September 2022, the person writing the trust would originally have to register within 30 days of creating the trust. However, HMRC has increased the 30-day limit to 90 days. There have also been concerns that many trustees may be caught out in the new registration requirement. This may lead to more trust disputes.
The obligation extends to all UK express trusts and some non-UK express trusts unless the trust is of a type specifically excluded by HMRC’s guidance. Excluded Trusts include:
- Life policies or pensions written into trust
- UK-registered charities
- Will trusts with limits of two years
- Trusts for bereaved children
A partner at tax advisors RSM UK says: “What constitutes a trust arrangement under the TRS may no longer correlate with what an individual would consider to be a trust,”
“Some arrangements popular among parents and grandparents, such as bare trusts and bank accounts held for minors, are not exempt. This means they need to register those trusts.”
“(However) it remains unclear whether other joint property holding arrangements, including those where more than four individuals have a joint interest in a property or tenancy agreement, are covered by the exemption or not,”
She also notes that a lack of understanding of obligations is not a defence for failing to comply, adding that lack of awareness, and consequently lack of action, may lead to more people being handed penalties.
The cause of trust and inheritance disputes can vary enormously. However, at the centre of every challenge is a person who believes they’re victims of unfair treatment. For instance, trust suffers from improper management. Additionally, the trustees may interpret the intentions of the trust.
People make challenges in a number of ways. For instance, they target the value of the assets within a trust. Or there might exist a fundamental disagreement between beneficiaries.
Handling Trust and Inheritance Disputes
The nature of a trust’s existence is to prevent financial disputes. Unfortunately, even those that are established with careful consideration to both tenants and beneficiaries can still be subject to dispute. It is important that trust disputes are handled with care and sensitivity. This is because they usually involve family members. Working with the right solicitors means you can protect both your rights and your relationship with your family.
Trusts created on or after 1 February 2001 are legislated under the Trustee Act 2000. Those created before this date are subject to different laws. Our team has a comprehensive working knowledge of all of these.
How We Can Help
Here at The Inheritance Experts we work with solicitors who have years of experience dealing with inheritance claims. This includes trust disputes and all things related to trusts. Contact us by filling in our contact form. Or call us on 01614138763 to speak to one of our friendly knowledgeable advisors.