Life Interest Trust of Property by Will

W died four years ago leaving her share of the marital property to H in a life interest trust. H is the sole Trustee. I have been asked to set up the Trust.

  1. Do users forsee any problems with Local Authorities if H is the sole Trustee or is it simply prudent to appoint another?
  2. Do HMRC now require that such Trusts are registered at the outset, even if it is envisaged that no income is to be earned by the Trust?

Many thanks for your assistance.

Claire Carr
Rexton Law LLP

You would need to appoint a co-trustee first as it relates to land.

I would suggest updating HMLR Legal Title to add co-trustee and the relevant restriction confirming half share owned by H and half share by Trust of the late W

As it relates to property there is no requirement to register for tax returns as no income is being produced at present if he is living there however all trusts are going to need to be registered going forwards I believe. I need to double check the dates/trusts that need registering myself.

I would just write to HMRC advising of the Trust’s existence but that it is not generating income as itconsists solely of the half share of the property in trust for H for his lifetime and they will then reply should anything need doing.

Maria Goodacre
Bells Solicitors Ltd

Many thanks for your help Maria.

Claire Carr
Rexton Law LLP