As you will be aware, the Trust Registration Service (TRS) forms part of the UK’s implementation of the Fifth Money Laundering Directive (or 5MLD for short) and has extended its scope to include the registration of all UK and some non-UK trusts, whether or not the trust has to pay any tax, but with some specific exclusions.
Consequently, by 1st of September 2022, all WAY Inheritor plans must be registered on the Trust Registration Service with details of the settlor, trustees, the beneficiaries and the assets held.
Not only is there a requirement for Lay Trustees to register trusts on the Trust Registration Service but there is also an ongoing requirement to then ensure that the register is confirmed and updated on an annual basis.
It is important to highlight that the responsibility for registration lies with the trustees and as things stand, IFAs are not permitted to register trusts on behalf of lay trustees unless they are an authorised HMRC agent, or they are explicitly ‘providing accountancy services to the trustees’.
This additional administrative burden may lead to lay trustees feeling daunted, on top of the already complex duties imposed upon trustees, to administer the trust in the best interest of the beneficiaries, all the while keeping in mind the wishes of the settlor whilst ensuring tax compliance and avoiding HMRC penalties which may arise from any oversight. If this is the case, appointing WAY Trustees Limited, as professional trustees in their place, could be a solution.
WAY Trustees and the Trust Registration Service
WAY Trustees offer a professional trustee service whereby every trust that we manage is correctly registered on the Trust Registration Service and fully complies with all legal reporting obligations. We keep up to date with the latest and ever-evolving tax and trust legislation whilst dealing with all the administration surrounding the trust including preparing trust accounts and submitting annual tax returns.
The benefits of appointing WAY Trustees as independent professional trustees are considerable. It will alleviate the heavy burden placed on lay trustees who may well not be fully aware of the subtleties and intricacies of the trust deed or the consequences of any decisions that may impact the trust in the future. Our personal service, objectivity, specialist knowledge and years of experience mean a far greater level of skill and care in looking after your client’s trust.
Our Professional Trustee service is highly regarded among later life professionals and law firms alike such as STEP – a global professional body specialising in inheritance and succession planning, helping families plan for their futures. Not only do WAY Trustees have one long-standing, STEP qualified Trust Manager, we are proud to have a further two team members that are soon-to-be qualified STEP professionals. We also have a glowing testimonial from legal firm Mills & Reeve who specialise in trust work, about our continued work on behalf of settlors and beneficiaries of the many Trusts we oversee. Click here to read our website.
An example of our superior support is our Letter of Wishes Compendium. Compiled and produced exclusively for WAY Trustees clients only, we wanted to make the onboarding process as clear and supportive as possible to settlors and their families. This print only document is aimed at the end client and explains the basics of what a Letter of Wishes is, why it’s an important document and how it could be drafted. It’s been excellently received!
WAY Trustees is currently responsible for setting up and managing over 1500 individual trusts containing assets of almost £200 million, saving clients many millions of pounds in potential Inheritance Tax (IHT) liabilities. continue to provide robust support to IFA’s, settlors and beneficiaries alike but for your peace of mind,To aid our ongoing trust work, we’ve compiled and produced a
The use of the Letter of Wishes Compendium is available exclusively to clients of WAY Trustees Limited.
If you feel that appointing WAY Trustees Limited would be the right move for your clients, especially in the light of the impending TRS deadline, then please do not hesitate to contact us to discuss, either by telephone on 01202 890895 or by email at clientservices@waygroup.co.uk.