New Money Laundering regulations for UK will trusts

Today, the new legislation ‘The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 comes into force in the UK, implementing the 5th Anti-Money Laundering Directive.

Why is it related to writing your will?  Good question…

If you have already written a will that will create a trust on your death, or are considering including such a will in your trust, there is an impact to your estate when you die.

The 4th Money Laundering Regulations, which have been in force since June 2017, required all trusts that had a tax implication or consequence to be registered with HMRC.  This was achieved via their website or downloadable forms.

The amendment valid from today requires that all UK express trusts must be registered with HMRC, whether there is a tax impact to them or not.  This includes:

• Legislative trusts, such as a trust imposed on intestacy, or co-ownership of land
• Insurance Policy trusts
• Charitable trusts
• Will trusts
  • trusts holding only the property of a person’s estate and if the death was in the last 2 years
  • Any will trust not wound up within 2 years of the testators death
• Death benefit trusts
  • if the death was in the last 2 year and only holds benefits received of the death of the person assured
• Non UK trusts

Deadlines

Non-taxable Trusts which are not excluded

If you are a trustee for an existing trust, you have until 10th March 2022 to register the trust.

For trusts created after 9th Feb 2022, they must be registered within 30 days of creation

Taxable Trusts

Trusts created before 6th April 2021 must be registered by 31st January 2022.

The trust must be registered by the trustees or an agent of the trustee via the HMRC website:

www.gov.uk/guidance/register-a-trust-as-a-trustee