Trust closedowns**, or vesting (as the case may be)

Following on from last week's post, in the case of winding up the trust due to a lost trust deed, some of the considerations a trustee should generally take into account include:

1. should the trust property be sold with the net proceeds of sale then distributed to the beneficiaries?
2. what level of certainty does the trustee have that they have identified all potential beneficiaries and adequately discharged their obligations to all such beneficiaries?
3. should assets be transferred to beneficiaries as they are (that is as an 'in specie' distribution)?
4. what are the revenue consequences (particularly tax and stamp duty) of each distribution alternative?
5. have all loan accounts and unpaid present entitlements with beneficiaries been satisfied (if known)?
6. which beneficiaries will receive the distributions?
7. have all legal, accounting, tax and statutory requirements of both the trustee and the trust itself been complied with?
8. how will the records (if any) of the trust be stored following vesting?
9. will all beneficiaries indemnify the trustee for the actions taken by the trustee in historically administering the trust and for the wind itself?

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** For the trainspotters, the title of today's post is riffed from the Cure song 'Closedown’.

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