Following the introduction of the Trust Registration Service (TRS), HMRC now requires some estates to be registered on the TRS.
The registration of an estate is mandatory if certain circumstances apply. Failure to register an estate could result in large penalties.
If administration of the estate cannot be completed within 2 years of the date of death, the estate must be registered on the TRS. This will depend on the construction and wording in the will but essentially, if the estate is left to the Executors ‘upon trust’ for the beneficiaries named in the will, then a trust has been created and must be registered if the administration exceeds two years.
There are various circumstances within an estate which will require administration. If the executors decide to vary the contents of the will after the testator has passed away, then a new trust is created and the varied estate must be registered on the TRS within 90 days of the variation. If assets are appropriated to beneficiaries, usually to minimize the amount of inheritance tax due on the estate, or to maximize the value of the reliefs available to be claimed, then unless the transfer of the assets takes place on the same day as the appropriation, a trust is created and will also need to be registered.
There are other circumstances that will also require registration, so if you have any doubts over the need for registration of an estate, register in any event to avoid being considered non-compliant.
If you require personalized assistance or have questions regarding estate administration and TRS registration, don’t hesitate to reach out to James Rust, our expert Private Client Solicitor and Associate. With his extensive knowledge and experience, James is here to provide you with the guidance and support you need to manage these complex matters.
Feel free to contact James at 01202 482202 to discuss your concerns and ensure your estate administration is handled with precision and compliance.