Many family trusts remain in place for years, and sometimes decades, without any formal review. Trustees often assume that because a trust has existed for many years and no obvious issues have arisen, everything must be in order. However, the circumstances surrounding trust rarely remain unchanged. Beneficiaries grow older, trustees retire or die, tax rules evolve and the assets held within the trust may change significantly in value.

A trust that worked perfectly when it was established may therefore no longer achieve the purpose for which it was created.

Trustees have ongoing legal and administrative responsibilities and should review the trust from time to time to ensure it remains properly administered and continues to achieve its intended purpose. Regular reviews can help identify issues before they become costly or difficult to rectify.

Key takeaway

Trustees are personally responsible for ensuring that a trust is administered correctly. A trust that has existed for many years is not necessarily being administered correctly, does not automatically comply with current legal and tax requirements and may no longer be achieving the purpose for which it was established. A periodic review can help trustees identify administrative, tax and registration issues, understand the powers available under the trust deed and ensure that the trust continues to meet the needs of the beneficiaries.

What are trustee responsibilities?

Many trustees are surprised to learn that accepting an appointment brings ongoing responsibilities.

Trustees must act in accordance with the terms of the trust, act in the interests of the beneficiaries, manage trust assets prudently and keep appropriate records. They should also ensure that legal, regulatory and tax obligations are met.

Why periodic reviews are important

Trustees are often surprised by what a review of a historic trust uncovers. It is not uncommon to discover missing trustee appointment documents, outdated beneficiary information, unregistered trusts or powers within the trust deed that have never been considered.

In our experience, many older trusts have not been reviewed for a number of years. It is common to find that a trustee has died or retired without the trust records being updated. However, a trust review should go beyond administration and compliance. Trustees should also consider whether the trust remains suitable for the family circumstances it was intended to address.

Family circumstances may have changed considerably since the trust was created. Beneficiaries may now be financially secure, children may have become adults, vulnerable beneficiaries may have different needs, properties may have increased substantially in value, or assets may no longer require the protection the trust was originally designed to provide.

A review provides an opportunity to consider whether trust assets are being managed and distributed appropriately, whether there are tax issues or planning opportunities that should be considered and whether the trustees should be taking a different approach to the exercise of their powers.

Many trust deeds contain powers that may allow trustees to restructure arrangements, advance capital, appoint assets to beneficiaries or even bring the trust to an end. Understanding the options available can be just as important as ensuring ongoing compliance.

For many families, a review provides reassurance that the trust continues to meet the needs of the beneficiaries and highlights any issues before they become more difficult or costly to resolve.

Reviewing an existing or historic trust?

Grant Saw's Trusts team advises trustees, families and business owners on reviewing and administering existing trusts — from documentation and compliance to registration and succession planning.

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Are the trust documentation and trustee records up to date?

One of the first areas to review is whether trust records accurately reflect the current position. We frequently encounter situations where the trustees have been managing a trust informally for many years, but key appointment, retirement or administrative documents cannot readily be located. Whilst this does not necessarily mean there is a problem, it can create delays and additional costs when trustees later need to sell property, deal with investments or exercise powers under the trust.

Maintaining accurate records helps trustees demonstrate that they have fulfilled their duties and provides a clear audit trail for future trustees.

Has the trust been administered correctly?

Trustees should consider whether the trust has been actively administered or simply left to continue without review.

Questions may include:

Have all reporting requirements been met?
Are trust assets held correctly?
Have trust investments been reviewed regularly and is professional investment advice being obtained where appropriate?
Have distributions been properly documented?
Have trustees considered all relevant factors when exercising discretionary powers?
Are there any outstanding administrative issues that require attention?

Trustees who inherit responsibility for a long-standing trust should not assume that previous administration was correct and should satisfy themselves that matters are in order.

Reviewing tax and Trust Registration Service obligations

Tax compliance is an important aspect of trust administration.

Depending on the type of trust and the assets involved, trustees may need to consider income tax, capital gains tax and inheritance tax obligations. For relevant property trusts, this may include reviewing ten-year anniversary charges and exit charge reporting.

Trustees should also consider whether the trust is required to be registered with HMRC's Trust Registration Service and whether the information held by HMRC remains accurate and up to date.

Many trustees of historic trusts are unaware that registration requirements have changed significantly in recent years, making a periodic review particularly important.

A common issue we encounter is trustees assuming that a trust with little or no tax liability has no reporting obligations. However, registration and compliance requirements often apply regardless of whether tax is payable.

Trustee responsibilities: frequently asked questions

What are the ongoing responsibilities of a trustee?

Trustees are responsible for administering the trust in accordance with its terms, acting in the interests of the beneficiaries and exercising reasonable care and skill when managing trust assets.

They should keep investments under regular review, take appropriate professional advice where required, and ensure that trust assets remain suitable having regard to the needs of both current and future beneficiaries. Trustees must also understand the circumstances in which they can distribute or apply trust funds and ensure that any exercise of their powers is properly documented and within the terms of the trust.

Trustees should maintain accurate records, consider relevant tax obligations, and ensure that the trust continues to operate as intended.

Should trustees review an existing or historic trust and how often?

There is no legal requirement to review a trust at fixed intervals. However, trustees should consider a review when there are significant changes to family circumstances, trust assets, trustee appointment, retirements or deaths or tax legislation. Historic trusts can particularly benefit from a periodic review to ensure they remain compliant and continue to meet the needs of the beneficiaries.

Do I need to register an existing trust with HMRC and what if it wasn't registered on time?

Many trusts are required to register with HMRC's Trust Registration Service, although there are a number of exclusions. If trustees discover that a trust should have been registered but was not, they should take advice and rectify the position as soon as possible.

Does a bare trust or a Will trust need to be registered?

Recent changes to the trust registration rules mean that many bare trusts are now required to be registered with HMRC, although several exclusions apply. Common exclusions can include certain bank accounts held for children and some jointly owned property arrangements.

Trusts created by a Will are generally excluded from registration during the first two years following the death. Where a will trust continues beyond that period, registration may be required unless another exclusion applies.

Trustees should seek advice if they are uncertain whether a trust qualifies for an exclusion or whether registration is required.

What tax and compliance points should the trustees of an older trust check?

Trustees should consider whether all tax reporting obligations have been met, including income tax, capital gains tax and inheritance tax where relevant. They should also review Trust Registration Service requirements, trust accounts, trustee appointments, and records of trustee decisions.

Can I manage or review a trust myself, or do I need a solicitor?

Whilst trustees can administer many trusts themselves, they remain personally responsible for the decisions they make and can be personally liable if things go wrong.

Given the potential legal, tax and administrative issues that can arise, particularly in relation to older trusts, it is often sensible to obtain professional advice. A trust review can provide reassurance that the trust is being administered correctly, that all compliance obligations have been met, and that no opportunities or issues have been overlooked.

Many trustees only seek advice when a property is being sold; a beneficiary requests a distribution, or a financial institution asks for evidence that the trust has been properly administered. In many cases, a review undertaken at an earlier stage could have identified and resolved issues before they became time-critical.

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About the Author

Charlotte Warren is a Partner at Grant Saw Solicitors LLP specialising in trusts, estate planning and succession planning. She advises high-net-worth individuals, business owners and families on inheritance tax planning, the use of trusts, and long-term strategies for preserving and transferring wealth — including family businesses — across generations.

Charlotte qualified as a solicitor in 2015, training in Sussex before developing her expertise at prominent regional firms across London and Surrey. She joined Grant Saw in 2020, where she leads the Trusts team from the firm's Greenwich office.

She is a fully qualified member of the Society of Trusts and Estate Practitioners (STEP) and the Association of Lifetime Lawyers — the two leading professional bodies in private client and estate planning practice.

Charlotte is a regulated solicitor authorised by the Solicitors Regulation Authority.

Trust and estate planning advice

Grant Saw's Trusts team advises individuals, families and business owners across Greenwich and South East London on inheritance tax planning, trust structures and succession planning.

If you are thinking about your estate or considering how best to protect and pass on your assets, Charlotte and her team can help.

Call 020 8858 6971 or email charlotte.warren@grantsaw.co.uk to discuss your circumstances.

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This article is for general information only and is not legal advice. Laws and guidance change and outcomes depend on facts. If you need advice on your situation, please contact us. Grant Saw Solicitors LLP is authorised and regulated by the Solicitors Regulation Authority.

Last updated: 26 August 2026