client charging management expenses to his trust

when is a trust settlor interested

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Scenario is client and wife own a let property and want to put it into trust for their adult children with them as trustees with children and children as beneficiaries. Client has property management company and wants to charge the trust expenses for managing the property. My question is would this then make the trust settlor interested? I cant find specific guidance on this other than a trust is settlor interested if the settlor can benefit from the trust. Is the fact he would be charging  expensese through his company make this non ettlor interested? I suspect not but would be good to hear opinions.


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By Paula@Butt
15th Mar 2023 10:15

You need to refer back to the trust deed on trustee remuneration. General law specifically prohibits trustees making charges to trusts, but the deed can override that by making specific provisions, such as the common clause that permits professional trustees to make charges.

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Replying to Paula@Butt:
By alisonis
15th Mar 2023 10:26

Thank you. they haven't actually set the trust up yet so should I flag that when drafting the trust deed they need to ensure it is worded such that his company can charge expenses for managing the property. In which case should the company be named as a trustee rather than him personally? And what about the fact that his wife owns half of the property. She is also a director of his company but doesn't draw any salary or dividends.

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