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do I need a deed of assignment for the resignation of a trustee

by exasperated 29 February 2012 |

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I have investment bonds registered in the name of myself and another trustee although the ultimate benefit is mine. It is now time to transfer each to my sole name. my co-trustee has suggested this and he is no longer registered as an IFA and I need financial advice.
the bond 'supplier' is asking for a deed of assignment to be signed and registered.
An IFA (registered) has told me this should not be signed merely if one trustee is resigning.

could anyone give me any views or questions I should ask. thank you very much

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879

MikeGG1 posted
Both are correct.

This seems not to be the resignation of a trustee but the wind up of a trust. The 2 trustees need to transfer the bond into your personal name.

Mike
Posted on 29 February 2012 | Love 0 loves Report
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exasperated posted
thank you for your reply

is one preferable to the other, if so which?

I think I probably have to ask the question of whether there are any pitfalls to be aware of if the trust is wound up, it was created in my father's will and he died 1996

eg - any tax liability or other complication

as I understand it the bonds do not have to be encashed but this would simply place them in my sole control and could be included in another trust if necessary

Posted on 29 February 2012 | Love 0 loves Report
879

MikeGG1 posted
It all depends on the terms of the trust, what it was intended to do and whether it still achieved its objective.

It might be, for instance, a family trust to avoid successional Inheritance Tax, whereby you are the prime beneficiary so far as income is concerned but the capital was intended to remain in trust for your successors to avoid IHT when you die.

My previous answer simply related to the 2 courses of action suggested. I cannot advise on which is preferable because that would depend on circumstances.

Is the ex-IFA a family member or friend of you or your father? It could be that you need financial advice on the viability of the the trust and the advisability of the investment. Retirement and replacement of the other trustee is a completely separate issue.

Mike
Posted on 29 February 2012 | Love 0 loves Report

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