Hi
My clients (husband and wife) following accountant’s advice elected to set up a discretionary trust transferring part of a property (holding over a gain) and cash.
I acted on document production only. Pool of beneficiaries included descendants, spouses of descendants, his parents, brother and his descendants and any charity. We suggested they add some charities and non-descendant beneficiaries at our initial meeting and on the draft added his family and any charity. On day of execution they decided to add back up beneficiaries from her will letter of wishes (not prepared by us) being some friends and named charities to increase the pool of beneficiaries
This was signed two weeks ago and they are the settlors and trustees so trust exists despite assets not being transferred into trust account. They registered the trust with the TRS but are having difficulty opening a bank account as (1) the banks want ID for all the beneficiaries and (2) one of the friends is not UK resident.
Resettlement would be an issue as hold over not possible as no IHT and would be a big gain payable. Query whether creating a sub-fund appointing to a selection of beneficiaries would give same issue
Does anyone have any suggestions including if there are any more accommodating banks. I used the Arken Lifetime precedent which I was trialing and it doesn’t have the power to remove beneficiaries.
Any guidance would be welcomed.
Have a good weekend.
Miriam