Have you been asked to take on a trustee (or executor) role for someone\u2019s will? If so, did you understand what the role entailed, or take advice before accepting?<\/p>\n
It\u2019s all too common for people to agree to say yes without finding out what\u2019s involved. Taking on an executor \/trusteeship is not to be done lightly and you should take proper advice, especially if you are unfamiliar with estate and trust management.<\/p>\n
If you\u2019re a new trustee, you should establish the nature and extent of the trust asset(s), as this will also determine the nature of your responsibilities. For example, if it is a share in a property, is there insurance in place? Who is responsible for this and for other outgoings? Do you and the other trustees have access to the property so you can inspect it?<\/p>\n
If the asset creates an income, have you registered the trust with HMRC and submitted regular income tax returns? Trusts do not have an allowance similar to personal income tax; but instead there is a trustee rate of income tax associated with a discretionary trust or other \u2018relevant property regime\u2019 trust. It\u2019s worth speaking to a qualified practitioner<\/a> to fully understand this and other issues.<\/p>\n If you fail to register with HMRC or pay income tax, you may incur penalties, so it\u2019s better to do this at the outset. I know of one case where a man who was co-executor of his late wife\u2019s estate, which included a nil-rate band trust and an IOU to the trust, had not registered the trust even after ten years! A very late filing to HMRC was required, and the family had to seek advice for what had become a messy and tax-inefficient situation.<\/p>\n If you\u2019re appointed trustee, seek advice, and soon, as there are real responsibilities to fulfil both at the outset and going forward.<\/p>\n If you\u2019re making your own will and need to choose trustees\/executors, you\u2019ll need to consider whether they will agree, whether they can work well with any other named person(s), and if they are suitable for the position.<\/p>\nSeek advice<\/h2>\n
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What about choosing trustees\/executors for my own will?<\/h2>\n