I have a Will where the deceased has left most of his estate to his young daughter who is only 9 and it is to be held in trust for her until she attains the age of 21.
I would say that it falls into the into the category of the bereaved young person’s 18 - 25 trust as she receives the benefit at age 21. Would you agree?
Also, can I just check that this trust would not need to be registered on the Trust Register until the daughter turns 18 – is that right?
Finally, I wonder if someone can advise on how the income of the trust once it is established should be dealt with – is it as trust income or basic and perhaps trust income after she turns 18?
Many thanks in advance.
Without providing legal advice and without knowing the exact terms of the Will, from what you have said it seems likely (but not definite) that it may be an 18-25 trust. That only affects any inheritance tax consequences, not other taxes.
Yes it would need to be registered on the Trust Register as it is an express trust (originates from a Will) and will probably also need a UTR (unique taxpayer reference) to deal with its tax compliance obligations. Does the daughter have an entitlement to income as it arises or do the trustees have discretion until she reaches a particular age? This will affect the income tax consequences.
It sounds like you need to take further professional advice. Please feel free to message me to see if this is something we might assist with (other STEP accountancy advisors are available) 
Maxine Higgins
TC Citroen Wells
Yes, the trust would fall under a bereaved young person’s 18-25 trust. It should be registered when the daughter turns 18, and the income should be treated as trust income.
Since we are told that the trust will have income it might be be a taxable relevant trust now or shortly and ‘registration’ would be required probably years earlier than you suggest.
HMRC see the TRS as the mechanism for trustees to give their s 7 TMA notice, but the time limit for doing that is earlier than the date that the trust must ‘register.’ if income tax is the trigger for it being a taxable relevant trust.
If the trust fund is invested in quoted shares then SDRT is likely to be the trigger that requires ‘registration’.
The rate of income tax will depend on whether the child has an interest in possession or not,
If there is an IIP, mandating the income to the child might simplify matters.
If in doubt register - it would be cheaper than the £5K penalty threatened by HMRC and you would have the proof of registration that other professionals will expect to see.
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