Trust Register and Settlor following deed of variation creating DT

Like many struggling with the Trust Register and the frustration of an ill-managed scheme which is putting us all under considerable pressure to register existing trusts in a short time frame. Hours wasted in getting over the first hurdle to gain access to the register and now even more hours lost in the registration process.

Not sure about who to record as the settlor where a Discretionary Trust arises as a result of a Deed of Variation which re-directed an absolute gift to the deceased’s son to one where the deceased’s son was included amongst the potential beneficiaries to the DT. The Settlor for IHT purposes would I think be the deceased but for other tax purposes the settlor would be the son. I have assumed that the settlor for the purposes on the Trust Register is the son who concluded the deed of variation. Is this correct?

Alison Hill
Ford Simey

I would have put in the settlor under trust law, ie the son (it’s his gift). But it doesn’t matter, because no-one is going to come back to the Trusts Register for tax purposes.

Julian Cohen, Solicitor

1 Like

HMRC have just told me that both need to be on the register.
Cindy Chaplin
Larking Gowen

I have the same situation and understand that HMRC have confirmed details must be included of every party receiving less by virtue of the DofV.

IS Alison correct in stating that the DofV wlil be effective for IHT purposes (i.e. reading back). I have a situation where daughter is one of two residuary beneficiaries. She wants to vary her share to provide £100k to be held on discretionary trusts for grandchildren with power to add beneficiaries.

Kathy Melkerts
Melkerts Solicitors