Frequently Asked Questions

There is no such thing as a stupid question. I deal with Wills, Lasting Powers of Attorney, Trusts and the like all day, every day. You don't. So why would you know my craft inside out? I understand that. 

I would much rather my clients pose the questions they need to ask so that they understand what we're talking about. We're talking about everything you own - it's pretty important to have a good grasp of what we're doing with it. 

Here follows a selection of commonly asked questions but if you would like me to answer anything else, please do get in touch…

I do not store my clients' Wills but it is important to me to offer a facility for storage. 

I have an arrangement with the largest Will Storage facility in the South-West, Trust Inheritance, whereby my clients can store their Wills for the lifetime of the document in their secure vault. Usually the fee for such storage would be £36 per year so that is a considerable saving.  

Trust Inheritance offers a wide range of bereavement services, many of which have been very useful to West Country Wills clients, their Executors and their loved ones.

You are not obliged to store your Will anywhere in particular but it makes good sense to have the master copy, the legal copy of your Will, securely stored in a vault where it is protected from damage (accidental or malicious), fire, flood and theft. 

There are many types of Trust and the government is concerned that Trusts are being used to launder money. Clients with Protective Property Trust Wills or Family Trusts need have no fear about their being involved in money laundering. However, following the UK government's Fifth Money Laundering Directive, all Taunton Wills and West Country Wills clients with Trusts are advised to comply with the Trust Registration Service.

The following comes from the gov.uk website. If you are a Trustee or have created a Trust which has Trustees then you should read on…

You must register your trust with HMRC:

• to make sure you and the trust comply with anti-money laundering regulations
• if you need to get a Unique Taxpayer Reference (UTR) — for example, for filling in a Self Assessment tax return for the trust, even if the trust is on the exemption list

You must register if the trust becomes, or is liable for any of the following taxes:

• Capital Gains Tax
• Income Tax
• Inheritance Tax
• Stamp Duty Land Tax
• Stamp Duty Reserve Tax
• Land and Buildings Transaction Tax (in Scotland)
• Land Transaction Tax (in Wales)

The following types of trusts must register even if they have no tax liability:

• all UK express trusts — unless they are specifically excluded
• non-UK express trusts, like trusts that:
  • acquire land or property in the UK
  • have at least one trustee resident in the UK and enter into a ‘business relationship’ within the UK

If the trust is not resident in the UK (‘non resident trusts’), you must register the trust if it becomes liable for tax on income coming from the UK or on UK assets.

If the trust has a tax liability but this is covered by a relief, you’ll need to register the trust to claim the relief through Self Assessment.

Trusts that do not need to be registered unless they are liable to pay UK tax:

You do not need to register your trust if any of the following apply, unless it has a liability to UK taxation:

• the trust is used to hold money or assets of a UK registered pension scheme — like an occupational pension scheme
• the trust is used to hold life or retirement policies providing that the policy only pays out on death, terminal or critical illness or permanent disablement, or to meet the healthcare costs of the person assured
• the trust is holding insurance policy benefits received after the death of the person assured — as long as the benefits are paid out from the trust within 2 years of the death
• it’s a charitable trust that is registered as a charity in the UK or which is not required to register as a charity
• it’s a ‘pilot’ trust set up before 6 October 2020 and holds no more than £100 — pilot trusts set up on or after 6 October 2020 will need to register
• it’s a co-ownership trust set up to hold shares of property or other assets which are jointly owned by 2 or more people for themselves as ‘tenants in common’
• it’s a will trust created by a person’s will and comes into effect on their death providing they only hold the estate assets for up to 2 years after the person’s death
• it’s a trust for bereaved children under 18, or adults aged 18 to 25, set up under the will (or intestacy) of a deceased parent or the Criminal Injuries Compensation Scheme
• it’s a ‘financial’ or ‘commercial’ trust created in the course of professional services or business transactions for holding client money or other assets

Other less common types of express trusts which are set up for particular purposes are also excluded from registration unless they have to be registered because they are liable to pay tax.

Trusts which are not set up deliberately by a settlor but are imposed by courts or created by legislation, are not ‘express trusts’ and do not have to register unless they need to obtain a UTR to complete a tax return. Examples of these trusts include ones set up under:

• the intestacy laws when a person dies without a valid will and the assets in the estate are held by a trust before passing to relatives
• a court order to hold compensation payments

Some financial products and arrangements with ‘Trust’ in their description, like the Child Trust Fund or Venture Capital Trusts, are not really trusts, so do not need to be registered.

You should check with a solicitor, accountant, financial adviser or other professional adviser if you’re not sure if a product or arrangement:

• is a trust
• should be registered