Lowes Trust Registration Guide

Registration requirements

5MLD significantly expanded the scope of the trusts which are required to be registered on a central register (In the case of the UK this is the HMRC Trust Registration Service (TRS)) as well as the range of people who can access the information contained in the register.

All trusts that don’t fall into the following categories will required to be registered.

• Trusts used by government and other UK public authorities • Trusts for vulnerable beneficiaries or bereaved minors

UK trusts

The original HM Treasury Consultation on the transposition of 5MLD stated that all UK express trusts would be required to register, however, following a consultation document HMRC has proposed to exclude the following types of trusts from the obligation: • Statutory trusts: Some trusts are not created through a settlor’s express intentions but arise because of statutory provision. An example is an intestacy where statute introduces trusts to protect the interests of minor children. • UK registered pension scheme trusts will not be required to register on the TRS due to the low risks of AML or terrorist financing but pension scheme trusts that are not registered with HMRC on ‘Pension Schemes Online’ or ‘Manage and Register Pension Schemes’ will be required to register on the TRS (for example, unapproved schemes such as Employer Financed Retirement Benefits Schemes (EFRBS))

• Personal injury trusts

• Save as you earn schemes and share incentive plans

• Maintenance fund trusts

• Certain trusts incidental to commercial transactions

• Certain trusts used as part of financial markets infrastructure

• Authorised unit trusts

• Co-ownership trusts – where the trustees and beneficiaries are the same persons • Will trusts created on death that only receive assets from the estate and trusts that only receive death benefits from a life insurance policy and are wound up within 2 years of death • ‘Pilot’ trusts set up on or before 6 October 2020 holding assets valued at less than £100 or less or until further assets are added. New pilot trusts set up after this date (e.g. ‘spousal by-pass’ trusts will

• Charitable trusts

• Pure protection life insurance policies and those paying out on critical illness or disablement (including group policies)

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