Trust Administration

Setting up a trust is only the beginning. Trusts have real, ongoing legal and tax obligations, and trustees are personally responsible for meeting them. Squiggle provides personalised trust administration support so your trust stays compliant and does what it was designed to do.

A trust is, in simple terms, a legal arrangement where one person (the "settlor", the person who puts the assets in) hands ownership of an asset to one or more "trustees" (the people who hold and manage it), for the benefit of named or identified "beneficiaries" (the people who benefit from it). Once created, a trust is a continuing legal entity. It does not run itself.

This factsheet explains each of the main administration responsibilities trustees face, what can go wrong if they are neglected, and how Squiggle supports trustees at every stage.

Trust registration (TRS)

Almost all UK express trusts must be registered with HMRC's Trust Registration Service (TRS), whether or not they pay any tax. This requirement was extended significantly in recent years and now captures many trusts that previously flew under the radar.

Key points:

Registration requires details of the trust's settlor, trustees and beneficiaries. The process differs depending on the type of trust and the assets it holds: a discretionary trust (where trustees have broad powers to decide how and when to use assets for beneficiaries) has different requirements from a bare trust (the simplest form, where the beneficiary's entitlement is fixed and immediate). We guide trustees through registration and all subsequent updates so nothing is missed.

What trustees need to provide

To register, trustees will typically need to gather:

If any of this information changes after registration, for example, a new trustee is appointed, a beneficiary is added or their address changes, the register must be updated within 90 days. Keeping a record of all such changes as they happen makes this much easier.

Trust bank accounts

A trust needs somewhere to hold its money. This sounds simple, but in practice it has become significantly harder over recent years: many high-street banks have quietly withdrawn from trust banking, and those that remain often impose lengthy delays and complex requirements.

We work with Cater Allen, a specialist provider of banking services to trusts (part of the Santander group), which offers current, notice and fixed-term deposit accounts for trusts.

When opening an account we prepare and provide all the documentation the bank needs, ensure the account is set up correctly, and make sure the right people have access. We currently work with Cater Allen and prepare the application paperwork; account opening is always at the bank's discretion and the arrangement may change.

(Account availability, eligibility and terms are set by Cater Allen and may change; opening an account is always subject to the bank's own checks and acceptance.)

Why a dedicated trust account matters

Mixing trust money with personal money is one of the most common, and most serious, mistakes trustees make. Trustees hold assets on behalf of beneficiaries, not for themselves, and keeping the money clearly separate is a basic requirement of trust law. A dedicated trust bank account:

Trust amendments

Life changes, and so does the law. From time to time a trust may need to be updated to reflect new circumstances. Common reasons for amendments include:

Trust law is technical and amendments must be done properly to be effective. An informal agreement between family members, or a letter of wishes that tries to override the trust deed, is not the same as a properly executed amendment. Our team helps trustees and settlors make informed decisions and handles the paperwork correctly.

A note on trustees living abroad

If a trustee moves overseas, this can complicate the tax status of the trust. A trust can become non-resident for tax purposes if all the trustees are non-UK resident, and with a mixture of UK and overseas trustees the position depends on the settlor's status. Even one trustee moving abroad can change the trust's tax residence, so always take advice first. If any trustee is thinking of living abroad, even temporarily, it is worth speaking to us before they go.

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Ongoing tax compliance

Trustees of discretionary and similar "relevant property" trusts (where the trust assets are not immediately and unconditionally owned by a beneficiary) need to be aware of a set of charges that can arise over the life of the trust.

We help trustees understand which of these apply to their particular trust and when, and we work with tax specialists where returns need to be completed or specialist advice is needed.

Step-by-step: the first year of a new trust

To make this more concrete, here is what the first twelve months of running a new trust typically involves:

Common mistakes trustees make

Not registering on time. The 90-day deadline catches many trustees by surprise, particularly where a trust is created as part of a Will and no one is keeping a close eye on the date.

Using a personal account. Putting trust money into a personal bank account, even temporarily, is a breach of trustee duty and creates accounting headaches that are difficult to unwind.

Ignoring ten-year anniversary charges. Some trustees are unaware that these charges exist until an anniversary is approaching. By then, it may be too late to put sensible planning in place. The first ten-year anniversary should go in the diary from the day the trust is created.

Failing to keep minutes of trustee decisions. Trustees should document significant decisions, particularly any distributions to beneficiaries, in writing. If the trust is ever challenged, a clear paper trail is invaluable.

Not telling HMRC about changes. Changes to trustees or beneficiaries need to be reported on the TRS within 90 days. Many trustees do not realise this, and the penalties for missing it can be significant.

Appointing a trustee who then moves abroad. This can change the tax residence of the whole trust without anyone noticing. Always take advice before any trustee becomes non-UK resident.

A hypothetical example

Imagine Janet sets up a discretionary trust in July 2024, naming her two adult children as beneficiaries and appointing her brother David as co-trustee alongside herself. The trust holds a sum of money she has saved over many years.

Within 90 days, Janet and David register the trust on the TRS and open a Cater Allen trust bank account, with guidance from Squiggle. In April 2025, the trust receives interest on its savings; Squiggle helps them file a Trust and Estate Tax Return for that year. In 2026, David's daughter is born and Janet wants to add her as a beneficiary; Squiggle drafts a deed of appointment adding her, and the TRS is updated within the required 90 days. Janet notes in her diary that the first ten-year anniversary falls in July 2034 and flags it as a date to review the trust's position with Squiggle well in advance.

The trust is not complicated to run, but it takes attention to detail and awareness of the deadlines. That is exactly what Squiggle's ongoing administration support provides.

This is a hypothetical example for illustration only.

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This factsheet is general information for England and Wales, not legal, tax or financial advice. Last reviewed: June 2026.