TRSM23140 - Types of trust that need to be registered: contents: excluded express trusts: contents: trusts imposed by legislation or court order

Legislative trusts

Trusts which are imposed or required by an enactment are excluded from registration as express trusts (Sch3A(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017).

Some common examples of legislative trusts include:

• bankruptcy, where the bankrupt’s property automatically vests in the trustee in bankruptcy
• intestacy, where those who take out letters of administration hold the deceased’s estate on trust, and to use the proceeds to pay debts and expenses and then to pay those entitled under the intestacy rules

Trusts imposed by court order

Trusts which are created by, or in order to satisfy the terms of, an order of a court or tribunal are excluded from registration as express trusts (Sch3A(2) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017).

A common example of this type of trust includes those that may arise to satisfy the terms of an order made by a court dealing with a dispute in matrimonial proceedings, such as trusts set up under a consent order under the Matrimonial Causes Act 1973 or the Civil Partnership Act 2004.