How to Dissolve a Trust
The way that a trust can be brought to an end depends on the type of trust in question, some trusts come to an end on a specific event, such as the coming of age or death of a beneficiary, while others are brought to an end at the discretion of the trustees.
At the end of a trust the trustees should consider:
- Are we carrying out the function of the trust in the best possible manner?
- Are we satisfied we have identified all the beneficiaries who are entitled?
- Have we recorded our actions in a deed and/or trust minute?
- Is there any tax to report on or pay?
- Have we disposed of all the trust assets to the beneficiaries?
- If the trust is a charity: have we complied with the Charity Commission’s requirements for winding up a charity?
If records have been kept throughout the trust then the process of dissolving it should not be complicated, but it is important that both the trusts and HMRC’s records are properly updated and aligned.
A trust does not come to an end simply because a trustee wishes to retire, or if the entire trust fund is loaned to a beneficiary, in both these instances ongoing record keeping and diligence is required by the continuing trustees.
Specialist Trust Solicitors
Our team of specialist trust solicitors have years of experience in successfully handling a wide range of trust cases for a number of different clients. We understand how challenging dealing with these kinds of issues can be and our team is on-hand to help every step of the way.
For more information visit our trusts page, or alternatively, if you require any advice and assistance with a legal matter concerning a trust, please feel free to get in touch with a member of the team on 01425 484848, or send us an email enquiry at firstname.lastname@example.org.
How can we help?
When you submit this form an email will be sent to the relevant department who will contact you within 48 hours. If you require urgent advice please call 01202 525333.