How to wind up a NRB discretionary trust

by **ajmace** on Thu Mar 31, 2011 3:10 pm

My mother and father had mirror discretionary trust wills. My mother died in April 2009 and now my father has died as well.

My brother and I are now considering 'winding up' our mother's trust within 2 years of her death. This will then leave just my father's trust to use in a more flexible way for grandchildren etc.

Cousal and King state that an absolute appointment of assets can be done by a memorandum note in the trust's records. However they also warn "a deed should always be used".

What do others think about me using just a memorandum note in the trust's records? Can anyone suggest some possible forms of wording?

by **section 44** on Thu Mar 31, 2011 3:28 pm

ajmace wrote:memorandum note

Seems either pointless or ineffective.

by **Lee Young** on Thu Mar 31, 2011 3:59 pm

The wording of the trusts will probably require a deed [of appointment] to be executed by the trustees to bring the trust to an end. YOU should instruct solicitors to prepare this. You might also find that the trust only came into existence on your mother's death - often these wills are worded (probably wrongly) such that they only happen "if my wife/husband survives me". You may therefore only have one trust to use going forward. Finally I would counsel against terminating a trust without your taking proper trusts/tax advice first.