Non run of the mill things we get asked about the Trust Registration Service

Much has been written about the Trust Registration Service (TRS). A quick online search reveals what needs done, when, and by whom. This is good, useful information for those registering, but what about those troublesome non run of the mill queries that leave trustees scratching their heads. Let’s consider eight of them.

Q1. If a trust was in place before the TRS launched in July 2017 then is it excluded?

A. These trusts are not excluded because the new legislation expands the scope of information previously collected. 

Q2. What is an express trust?

A. An express trust is a trust deliberately created by a settlor usually using a written trust deed. An express trust can be set up during a settlor’s lifetime or on their death through the settlor’s will. 

Q3.  What types of trust are not express trusts?

A. Non express trusts are created by the operation of law rather than being created intentionally by the settlor, for example statutory trusts created through the intestacy process or in  bankruptcy proceedings.

Q4. Are non-express trusts excluded from registering?

A. Yes, but an otherwise excluded trust is required to register if it has a UK tax liability.

Q5. Does a designated account for OEICs need registered?

A. Maybe. It might just be a naming convention where the account is "earmarked" for someone (typically a young person). If so, ownership remains with the person who set the account up and therefore, there are no TRS obligations. If however, an account has been irrevocably designated, and a trust created (normally involving paperwork), this then introduces TRS obligations.

Q6. Which trustee is legally responsible for registering?

A. All trustees are equally responsible, but the trustees will appoint a lead trustee to deal with the registration process.

Q7. Are will trusts excluded?

A. Yes, excluded from registration for two years from date of death. If it is still in existence after that date or if at any point property is added from outside the estate, it will need to register from that date.

Q8. Are any other types of express trust excluded?

A. Some specific types of express trust are excluded from registration as long as they remain non taxable, they include trusts where a disabled person is the beneficiary, and historic pilot trusts set up before 6 October 2020. More information on registration criteria for the TRS are available in our Trust Registration Service article.