HSBC has urged paraplanners and advisers to ensure trustees are focussed on the Government’s new Trust Registration deadline to avoid being fined.
Advisers who have written onshore investment bonds in trust for clients will find those clients affected by the new rules, created as part of a shake-up of anti-money laundering regulations.
The new rules mean any UK express trust must register the details of their beneficial owners – the settlers, trustees and beneficiaries – with the Trust Registration Service by 1 September 2022. Any trusts created after that data will have 90 days to register. Discretionary and absolute trusts are subject to the rules, as well as any discounted gift trust, loan trust and gift trust.
Trustees have a legal responsibility for registering the trust and need to nominate a lead trustee who will become the main point of contact with HM Revenue & Customs.
Mark Lambert, head of onshore bond distribution at HSBC Life, said: “Where an onshore investment bond is used for inheritance tax and intergenerational planning, trusts are an important part of the planning and solutions that advisers provide for their clients. The requirement to register with TRS must now be included as part of the process.
“HSBC Life is committed to supporting advisers and their clients, which is why we are highlighting the need to focus on the deadline and the support that has been prepared for advisers.”
