I look after a newly established discretionary trust with one UK rental property and a UK bank account. Settlor, trustees and beneficiaries all UK resident. Usual classes of beneficiary including widow, named adult (middle aged) children, and remoter issue (not named in the trust deed), their spouses, etc. No distributions have been made from the trust yet, and are unlikely to be until next tax year.
The bank has asked them to complete an Entity Self Certification form for AEOI purposes. The form asks for all controlling persons which I understand for CRS includes all beneficiaries as well as the settlor and trustees.
My questions are:
Do I need to list all living beneficiaries who fall within the remoter issue class (some are still minors) or do I just list the ones named in the trust deed and refer to the fact that there are other potential beneficiaries who fall into the class of remoter issue.
If distributions are subsequently made to some of the remoter issue do the trustees need to tell the bank and give their details even though there is no CRS reporting to do as all parties are UK resident?
If the trustees do give a full list including all living remoter issue, is there a problem under GDPR? I am not happy about giving away people’s details when there is no CRS reporting requirement.
If a beneficiary gets married, their spouse will join the class of beneficiaries. Do the trustees need to tell the bank?
I should be very grateful to hear people’s experience on this. Having spoken to some of my trust contacts its seems that many have not had to look at this, even where a bank account is held (and indeed in my many years of trust work I have not had to complete one of these before).
Thank you in anticipation for your help.
With kind regards
Sara Spencer ATII TEP
Sara Spencer Ltd