I have a client who set up a excepted group life policy which required a Discretionary Trust. The only asset in the trust was the excepted group life policy. The policy has lapsed and a new policy set up in a different trust. The existing trust holds no assets but falls with in the RPR. The ten year anniversary is in November 2024. There is no explicit power to terminate the trust by deed or assets to appoint (the policy paid out on several occasions in the previous 9.5 years).
Does anyone know if a formal deed is required or would a trustee resolution suffice?
A trust is not a legal person, it is the separation of ownership of an asset (legal vs beneficial). If there are no assets, then (in my view) no trust exists.
I know this sometimes makes people nervous, they would like a resolution bringing the trust to an end. There’s no particular harm in that, but I don’t see what it achieves.
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