Client is the sole trustee of a life interest trust and agrees it would be sensible to appoint an additional trustee in case anything happens to her (she is 85......)
She is very happy with this decision and wants to go ahead.
Assuming the trust deed allows her to appoint a new trustee, which will obviously be checked, are there any formal bits of paper that need to be filled in and registered anywhere, or can she just document the fact that she is appointing a new trustee to help her? And then obviously her trust registration will need to be updated with HMRC.
Or in other words, does she have to be fleeced by a lawyer for this privelige or can she do it herself?
Thank you
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Presumably all old ladies who were ever scammed by a fraudster were similarly very happy with their decision (at the time) to appoint the fraudster as a trustee, so that doesn't tell you anything. I would engage a professional here to ensure it's all kosher.
Even if you're not interested in preventing potential fraud, it's very easy to mess things up if you DIY resulting in properly big lawyers fees to solve/undo the mess.
I think when I was appointed to a number of trusts (my Dad wanted to resign and I was asked to be the under a bus cover for the remaining trustee) they executed minutes of appointment and minutes of resignation, but it was all a very long time ago now so not sure if my memory is totally correct.
p.s, Do consider all the possible ML grief that may arise.
Thank you - and thanks all for your concern. I am not planning on doing it for them, but just wondered if they had to use a solicitor given the outrageous fees they would undoubtedly charge, or if they could draw something up themselves that would be sufficient.
Solicitors ought not to be that pricey re this. (of course depends on solicitor, whether trust an existing client etc etc )
they shouldn't be, but in my experience you rarely get change out of £1000 if you ask a solicitor to do even the smallest task.
But that isn't surprising is it? Just opening a new client file is around 2 hours work re AML and LOE etc. admin. Then you have admin the other end re billing etc. That ignores the inevitable time consuming meetings, phone calls, emails etc.
Also, PI premiums are forever shooting up.
Running an IIP trust (properly) ain't ever going to be cheap.
As people say above, becoming a trustee is a very onerous duty potentially and the solicitor can be easily sued for getting it wrong.
I wouldn't charge less than £750 (plus VAT) for this advice.
That is why it is cheaper to already be on the books, so to speak.
At work we use one a little larger (192 staff) for most of our legal work and tend to only go to others if there is a particular need. (Right now we are using another firm re IHT work/shareholder agreements etc as the partner is a solicitor and a CTA and he has a good reputation, I have also gone elsewhere re employment work)
Re personal family solicitor I last year had my mortgage discharged for circa 180 inc vat (property was not on Land registry as we bought it so long ago) and I get my Dad's life interest trust managed for about 360 (inc vat) a year, but it is his ex partner so I think I am on mates rates.
p.s. I also have two pending POAs with our solicitor, they are quoted at circa 250 plus vat plus outlays (As getting older decided to tidy these)
Think our wills cost about 60 inc vat (for matching pair) but that was 30 years ago.
Do remember the online Trust declarations will I think also need updated. (I did two of these in January, long winded faff)
Vital to check the actual trust deed for how trustees should be appointed (and how many of them there should be)
Did this recently and found that the 'new' trustees that had been appointed a few years ago had not been appointed properly. (they had been appointed by minutes of existing trustees instead of a deed of appointment).
Had do to a deed of confirmation of appointment to put the house in order - this had the benefit of the trustees signing to say they accepted the appointment (as opposed to a minute that said 'they had agreed')
If there is a bank account, the bank will need to see a certified copy of whatever was used to appoint the new trustees and the bank mandate will need to change as well.
Deeds of appointment are fairly boilerplate -templates are available online fairly easily and cheaply - though possibly not that easily for an 85 year old to do.
Here is one (free) that has all of the necessary elements that would go into a deed of appointment https://www.jameshay.co.uk/media/1790/sipp-deed-of-appointment-of-new-tr...
From memory, the last time we got a solicitor to produce one it was a couple of hundred pounds (but there was a file already set up).
I never know what deeds are or aren't reserved instruments. It's also not just a matter of using the right template - there's a process.
This isn't something to get wrong.
In short, I agree with Justin. (Except about the fee level.)
