Changing a trust
Once a trust has been set up, it is possible for a beneficiary to change the original terms of that trust, whether it be to minimise potential taxes or to adapt the deed to make it more suitable for updated family circumstances.
Usually, in order to change a trust, all the beneficiaries must give their permission, therefore changing the trust by agreement. In this instance, the process can often be relatively straightforward.
All beneficiaries must sign a deed of variation, declaring the changes which are to be made to the trust. The deed is then passed to HMRC so that the amendments can be formalised.
On rare occasions, whereby an agreement has not been reached, the court does have the power to amend a trust. In this instance, a court application must be made. It must be noted however, that courts are often reluctant to interfere with the original contents of a trust and so appropriate advice should be sought.