If you or your spouse have included a life interest trust in your Will, beware of the need to register the trusts created under the Will.
There are potentially two types of trust which would have been created under a Life Interest Trust Will:
- The life interest trust for the surviving spouse;
- The property trust is created for the beneficiaries after the death of the surviving spouse.
If the surviving spouse expects to live in the property, or any future replacement property, for a period of more than two years after the date of death of the first spouse, then the trust will need to be registered and doing so immediately is better than waiting until the expiry of the two-year period.
The property trust will also need to be registered, but there is one main exemption. If the trustees and the beneficiaries of the property trust are the same people, then there is no need to register as they are essentially holding the property in trust for themselves. However, if you have different trustees and beneficiaries, the beneficiaries include minor children or grandchildren, or there are more beneficiaries than there are trustees, then the property trust will need to be registered within 90 days of the date of death.
If you are unsure of the need to register the trust created under the will, registration, in any event, is recommended to avoid being considered non-compliant and potentially subject to hefty penalties.
If you have any questions or concerns regarding life interest trusts and the requirement for registration, don’t hesitate to contact us. Our team of experts is available to provide guidance and support. Contact us through our website or by phone for personalized assistance with your specific needs.
Let us help ensure that your life interest trust is properly registered and in compliance with all regulations.