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Q: Grandparents gave property to grandchildren but because they are minors the property is to be held in trust by the children’s parents. I am aware this is a bare trust but is there a requirement to register the trust with HMRC even though there is no income generated.

A: HMRC say most bare trusts should register by the 1 September 2022 even if there is no income to report. However they do give an exemption for joint owned property held on behalf of a minor children – see HMRC guidance TRSM23050. This is a limited exemption that states one co-owner must be above 18 for the exemption to apply. So if both Grandchildren are minors this exemption doesn’t apply and the trust needs to register. 

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