How to Dissolve a Trust
The manner by which a trust can be brought to an end depends on the type of the trust in question. Some trusts come to an end on a specific event, such as the coming of age or death of a beneficiary; 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 a trust should not be too onerous but it is important that both the trusts and HMRC’s records are properly updated.
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.
For more information visit our trusts page, or alternatively if you require any advice and assistance with any matter concerning a trust please feel free to contact our dedicated Wills, Trusts & Probate team at our Ringwood office by calling 01425 484848 – or send us an email enquiry (email@example.com).