Bereaved Minor Trust

Trusts Discussion
1

I am dealing with an estate where I have 2 minor beneficiaries who receive a share of the estate at 18 so falls under the rules of a bereaved minor trust.

Their share of income from the estate is roughly £5,000 of gross interest with tax paid on this of £1,000. So, as no other income will be entitled to reclaim this from HMRC.

Do I prepare the R185E in their name and do a simple repayment claim, or

as the funds are going to the BMT, does the R185E need to be in the names of the trustee which will result in the trust needing registering with HMRC, a Vulnerable beneficiary election made, and the tax reclaimed through the trust tax return.

FYI, the trust would not need registering otherwise as the funds will be invested in non-income bearing assets.

Thanks in advance.

2

Is the net income going to be paid out to the minors (or their parents on their behalf)? If yes then a repayment claim can be made and the R185 should be issued by the Estate to the minors. If no then no repayment claim is due.
Unless the deceased was intestate so this is a statutory trust and not an express trust then it will need to be registered regardless of whether or not it is taxable - non-taxable express trusts receive a URN (unique registration number) rather than a UTR (unique taxpayer reference).

Maxine
TC Citroen Wells