At some point, a trust will come to its natural end – whether it’s served its purpose, reached its legal limit, or trustees and beneficiaries agree it’s time to bring things to a close.
From navigating the tax consequences to to pointing you in the right direction in respect of the legal and practical requirements, we’ll guide you through the wind-up process clearly and carefully.
Why might a trust be wound up?
There are several reasons trustees may choose – or be required – to close a trust:
- The trust has reached the end of its term
- A life tenant has passed away or a beneficiary becomes fully entitled
- The trust’s assets have reduced to a point where running costs outweigh the benefits
- It’s time to distribute capital for a specific need (e.g. helping beneficiaries onto the property ladder) or the trust has served its purpose
- There are growing complexities and changes in UK tax rules relating to offshore structures
- Trustees wish to split the trust to meet diverging beneficiary needs
The winding-up process
Winding up a trust requires care and compliance with the trust deeds. Our role is to support trustees through every stage:
Review the trust deed
Understand the tax consequences and process involved
Get tax advice early
Identify and mitigate potential tax liabilities for both trustees and beneficiaries
Work with legal partners
Work with solicitors for them to draft the necessary deed / documents to close the trust and, if relevant, secure appropriate indemnities to protect trustees
Prepare final accounts and tax filings
Settle liabilities and file final trust returns with HMRC
Handle practical tasks
Pay outstanding fees, close accounts, and manage the transfer of titles or investments
Distribute the assets
Transfer funds or property to beneficiaries and formally conclude the trust
Our trust services
Our people
It’s all about the people! We work hard to maintain our unique culture and recruit those who share our passion for client service, the value we can add to those around us and our never-ending quest to develop ourselves and our clients.
Sara Pedrotti
Sonia Munder
Sarah Clarke-Rae
Rachel Bowden
Louise Jones
Gordon McCaw
Ben Fiddes
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