Winding up a beneficiary will trust

Winding up a beneficiary will trust

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Hi,

My son is the sole beneficiary of a trust set up by his maternal grandfather in his will. The trust is due to mature when he reaches the age of 30 (he is currently 27). As he is about to get married and move to the USA, the trustees (his grandmother and mother) would like to wind up the trust and pass the assets held in the trust to the beneficiary so he can have the full use of them.

The assets comprise £45000 held in 4% Gilts due to mature on 2019.

I'd be very grateful for some guidance on the process for winding up the trust, and the tax implications?

Mike

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By jloboyle
24th Apr 2014 16:52

What does the Trust say?

Do the terms of the will trust allow the appointment of capital out prior to turning 30? If so then the Trustess can make a Deed of Appointment of the asset to the beneficiary and should be advised to obtain an indemnity as well just in case. There is no CGT on gilts so depending on how the grandson wants the assets the Trustees could sell and give him the cash. If not, the Trustees will be treated as having disposed of the assets on the appointment to the grandson.

The grandson may wish to check the US tax implications if he keeps the gilts and later sells the gilts whilst resident in the US.

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