TRSM32040 - Registration: contents: information required: contents: settlor details

The settlor is the person who settles property into the trust. This can be during the settlor’s lifetime (an ‘inter-vivos’ trust) or on death (for example, under the terms of the settlor’s will). A settlor of a trust created by will is often called a testator or testatrix.

There is usually only one settlor of a trust, but there can be more than one in certain situations.

If an inter-vivos trust is recorded on TRS and the settlor later dies, there is no requirement to report the death of the settlor on TRS or to update any of the information recorded on TRS relating to the settlor.

For all trusts registering on the Trust Registration Service (TRS), the trustees must provide the following information relating to the settlor or settlors  of the trust:

Settlors who are individuals:

  • Full name

  • Date of birth

  • Date of death
    • If the trust was set up after the settlor died.

  • Country of nationality
    • This is the country of which the individual is a national. In most cases, this is where the individual was born and where their passport is issued.
    • Some individuals may have dual or multiple nationalities. If so, selecting any applicable country of nationality is acceptable. However, if one of those countries of nationality is the UK, trustees must select the UK and not any other country.
    • If the settlor is deceased at time of registration, use the nationality at date of death.

  • Country of residence
    • This is usually the country where the individual lives and works most of the time during the tax year. If there is any doubt, trustees can check whether an individual is UK resident through the Statutory Residence Test (SRT).
    • For more complicated cases where the residency of the individual changes between tax years, HMRC will expect TRS to be updated with that change once the position for that tax year has been established as part of that individuals’ ongoing tax obligations.
    • Some individuals may have more than one country of residence, as defined by the laws of each of those countries. If so, selecting any applicable country of residence is acceptable. However, if one of the countries of residence is the UK, trustees must select UK and not any other country.
    • If the settlor is deceased at time of registration, use the last known country of residence.

  • Mental capacity
    • An individual does not have mental capacity if they cannot understand, retain, use or weigh information to make decisions about their role in the trust because of an impairment or disturbance in the functioning of their mind, such as they have a mental illness, learning disability, dementia, acquired brain injury, or they cannot communicate. See TRSM32100 for further information on mental capacity.
    • This question asks for the status of the settlor at time of registration, not settlement. Individuals must ordinarily have legal capacity in order to set up a trust.
    • This question is not asked if the settlor is deceased at time of registration, as mental capacity is only relevant for individuals during their lifetime.

Settlors that are businesses or organisations (for example, charities):

  • Business name

  • Country of residence
    • This is where the business is registered or incorporated. In the case of limited companies, the business has UK residency if it registered with Companies House. In other cases, select the country where the principal or main office is located.

Settlors of trusts established by Deeds of Variation

Where a trust has been established by a Deed of Variation or family arrangement varying a will, each person who took less under the deed than they would have done under the will is a settlor of the amount given up.

If property which would have been settled in trust on the death of the deceased is now comprised in this settlement, then the deceased is also a settlor of this amount.

Example

Jeremy’s will leaves 100% of his estate to his spouse Valerie. Valerie varies the will with a Deed of Variation to leave 50% of the estate into a trust. Valerie is the settlor of this trust, as she has given up an entitlement to 50% of the estate under the will.

Example

Annemiek’s will leaves 50% of her estate on discretionary trust to her children and 50% to her spouse Marianne. Marianne varies the will so that the entire residue is left on the trusts declared in Annemiek’s will to the children. The trust has received assets from both Annemiek under the original will; and from Marianne who has given up her entitlement to 50% of the estate. Annemiek and Marianne are both settlors of this trust.