Trust Administration Solicitors
Being appointed as a trustee carries real legal responsibility. Whether you’ve been named as a trustee under a loved one’s Will, taken on the role for a family trust, or are managing assets for a vulnerable beneficiary, the duties involved can be complex, time-consuming, and easy to get wrong. Mistakes can lead to personal liability, HMRC penalties, or disputes between beneficiaries.
Our trust administration solicitors provide practical, proportionate support to trustees, settlors, and beneficiaries throughout the life of a trust. As part of our wider Wills, trusts and estates practice, we work closely with clients on lifetime planning, Lasting Powers of Attorney and Wills, giving us a thorough understanding of how trusts are created and what effective administration looks like in practice.
Our trustee solicitors can assist with:
- Ongoing trustee advice and day-to-day administration
- Discretionary, life interest, bare, and disabled person’s trust management
- Will trusts and personal injury trusts
- Trust Registration Service (TRS) registration and ongoing filings
- Trust accounts UK, annual tax returns, and HMRC correspondence
- Trustee retirement, appointment, and removal
For more information on our estate and trust administration services, please feel free to contact our experienced trust solicitors.
What is trust administration?
Trust administration is the ongoing process of managing a trust in accordance with its terms and the law.
A trust is a legal arrangement where a settlor (the person who creates the trust) transfers assets to trustees, who hold and manage those assets for the benefit of named beneficiaries. Administration covers everything from keeping accurate records and distributing income to filing tax returns, complying with HMRC obligations, and handling changes in trusteeship.
Who we help
Lay trustees
Many people become trustees without fully appreciating what the role involves. If you’ve been appointed under a Will or by agreement and aren’t sure where to start, we can guide you through your duties clearly and take on as much of the practical work as you need.
Professional trustees and co-trustees
We work alongside professional trustees and act as co-trustees where appropriate. Whether you need a second trustee to satisfy a legal requirement or specialist legal input on a complex matter, our trust management solicitors can provide the support required.
Settlors and beneficiaries
If you set up a trust and want reassurance that it’s being administered correctly, or if you’re a beneficiary with questions about your entitlements, we can help. We explain your position in plain terms and, where administration has fallen short, can advise on the appropriate next steps. Where trust disputes require formal resolution, our contentious probate and inheritance disputes team is also available.
Speak to our trust administration solicitors today
To speak with a specialist about trust administration, please call 0208 680 5018 or contact your nearest Atkins Hope office in Croydon, Medway, Blackheath or Guildford.
If you’d prefer to make an enquiry online, use our simple online enquiry form, and a member of our team will respond promptly.
Types of trust we administer
Discretionary trusts
In a discretionary trust, trustees have the power to decide how income and capital are distributed among beneficiaries, and in what proportions. This flexibility makes discretionary trusts a popular tool for inheritance tax planning. We help trustees exercise their discretion correctly, record decisions clearly, and maintain compliance with HMRC requirements throughout.
Life interest and interest in possession trusts
A life interest trust (also called an interest in possession trust) gives one beneficiary the right to receive income from trust assets during their lifetime, with the remainder passing to others on their death. These arrangements are common where a surviving spouse needs financial security, but assets are ultimately intended for children. We advise on family trust administration, the duties of a trustee and help manage any changes in beneficial entitlement.
Bare trusts
A bare trust is the simplest form of trust; the beneficiary has an immediate and absolute right to both the assets and any income produced. Bare trusts are often used to hold assets for children until they turn 18. We advise trustees on their obligations and help ensure assets are correctly managed and transferred at the right time.
Disabled person’s and vulnerable beneficiary trusts
Trusts set up for a disabled person or vulnerable beneficiary can attract specific tax advantages, but only where strict conditions under the Finance Act 2005 are met. We guide trustees through the qualifying criteria, registration requirements, and HMRC reporting to ensure the trust remains compliant and the beneficiary’s interests are fully protected.
Personal injury trusts
Personal injury trusts hold compensation payments, protecting those funds from means-tested benefit assessments. We advise trustees on setup, ongoing administration, and any changes required over the trust’s lifetime.
Will trusts
Will trusts come into effect on death and are commonly used to provide for a surviving spouse, protect assets for children, or manage an inheritance for a vulnerable beneficiary.
Trustee duties and why specialist advice matters
There are significant trustee responsibilities. Under the Trustee Act 2000, they must act in the best interests of beneficiaries, invest prudently, keep proper accounts, and take professional advice where appropriate. Failing to meet these duties can result in personal liability for any loss the trust suffers.
Rest assured that with specialist legal support, you can fulfil your role correctly and with confidence. Our probate and estate administration solicitors work alongside our trust team where estates involve both probate and trust administration.
Trust tax, TRS, and HMRC compliance
Most trusts must now be registered with HMRC through the Trust Registration Service (TRS), even where no tax is payable. Failure to register or to update the register when circumstances change can result in penalties.
Trustees are also usually required to file an annual trust and estate tax return (form SA900), pay income tax on trust income, and report any capital gains. Discretionary trusts are also subject to inheritance tax in the form of ten-yearly periodic charges and exit charges when assets are distributed.
We handle TRS registration, annual tax returns, and correspondence with HMRC, and advise on inheritance tax obligations so trustees can meet their compliance duties without unnecessary stress.
Our fees and how we work
We provide clear, transparent pricing from the outset, so you know what to expect when incurring trust administration fees. Depending on the complexity of the trust and the level of support required, we can act on a fixed-fee or hourly-rate basis. Some clients prefer comprehensive ongoing support, while others instruct us for specific tasks such as TRS registration, preparing a deed of appointment, or drafting annual accounts. We’ll discuss your needs at the start and agree on the most appropriate arrangement for you.
Frequently asked questions about trust administration
What is the difference between trust administration and estate administration?
Estate administration is the process of winding up a deceased person’s estate, settling debts, and distributing what remains to beneficiaries. Trust administration is an ongoing process that continues for as long as the trust exists, which may be many years after the estate has been finalised. Our probate and estate administration solicitors can advise where both processes are needed at the same time.
Do I need a solicitor to administer a trust?
There’s no legal requirement, but trustee duties in the UK are significant, and errors can lead to personal liability or beneficiary disputes. Given the complexity of trust tax, HMRC registration, and legal obligations, specialist advice is strongly recommended, particularly where the trust holds property, significant assets, or has vulnerable beneficiaries.
What are a trustee’s main legal duties?
Trustees must act in the best interests of all beneficiaries, invest the trust assets prudently, keep accurate accounts, distribute income and capital in line with the trust terms, and comply with all HMRC and legal obligations. The Trustee Act 2000 sets out the general framework, though individual trust deeds may impose additional requirements. You will need to set up a comprehensive trust administration checklist to ensure that all duties and obligations are covered.
Do all trusts need to be registered with HMRC?
Most trusts must be registered with HMRC’s Trust Registration Service, including many express trusts even where they have no UK tax liability. Limited exemptions apply. Trustees should seek advice to confirm whether their trust needs to be registered and to ensure the register is updated whenever changes occur.
How much does trust administration cost?
Costs depend on the type of trust, the assets involved, how often decisions need to be made, and the level of support required. We provide clear fee information at the outset. Some work, such as TRS registration or preparing a deed of appointment, can be handled on a fixed-fee basis.
Can a trustee be removed or retire?
Yes. A trustee can retire voluntarily provided at least one trustee remains, or a replacement is appointed at the same time. A trustee may also be removed by the court where they have acted in breach of trust or can no longer fulfil their duties. We advise on both retirement and removal and prepare the formal documentation required.
What happens if trustees disagree?
Where trustees can’t reach agreement, trust administration can stall and beneficiaries may suffer as a result. We help trustees explore options for resolution, including mediation. Where a dispute can’t be resolved informally, it may be necessary to apply to the court for directions. Our contentious probate and disputes team is experienced in trust disputes and can advise on the right course of action.
Get trust administration support from Atkins Hope
To speak with a specialist about trust administration or discuss the range of probate and trust administration services we offer, please call 0208 680 5018 or contact your nearest Atkins Hope office in Croydon, Medway, Blackheath or Guildford.
If you’d prefer to make an enquiry online, use our simple online enquiry form, and a member of our team will respond promptly.
