We are acting for the Executor/Trustee of a Will which, after payment of a couple of small legacies, leaves the residuary estate to a discretionary trust with potential beneficiaries of named charities and such other charities that the Trustees may appoint.
£2.5m funds have been distributed to charities after the second anniversary of death recorded by Deed of Appointment from the Trust. Set sums have been appointed rather than shares of residue.
A balance of funds is held with the intention that the Trustee will distribute (in percentages) to the same charity beneficiaries named in the Deed of Appointment by the end of the estate administration period.
The estate has been registered with the TRS as a Complex Estate and all income (including that after the Deed of Appointment) is to be reported as estate income and tax paid (charities to reclaim).
We think that it may not strictly be necessary to register the Trust separately with the TRS if it benefits from charity exemption (although now over 2 years from date of death)?
Should there be a separate registration with the Charity Commission? In view of the imminent winding up of the estate and that all income will be reported as estate income to HMRC and tax paid does the Trustee need to register separately with the Charity Commission? The charitable Trust does have income which will exceed £5,000 for the period after the Deed of Appointment was made but it will be reported to HMRC as estate income because it is still arising during the course of the estate administration which has not yet ended. A registration with the Charity Commission would be purely to adhere to the rules if required and the charity trust would then be shut down shortly thereafter.
We would welcome any views or experience anyone has had with the Charity Commission and whether they would want or accept a registration in these circumstances.