The Truth About the Trusts Act 2019
When the Trusts Act 2019 came into force, many people were told their Trusts would become too hard to manage. Some were even advised to wind them up.
The truth? The Act didn’t create mountains of new admin. It mostly pulled together existing rules into one clear law—making it easier to understand, not harder.
1. Mum-and-Dad Trusts Remain Simple
If your Trust only owns the family home, it can be declared non-active. That means:
No separate bank account needed.
No annual tax return.
Outgoings can be paid just as if you owned the home personally.
2. Small Investments Can Be Restructured
If your Trust holds minor investments, it doesn’t mean endless tax returns.
Sell the investments to yourself, and
Prepare a Deed of Loan from the Trust to you.
Result: the Trust has no income, no return to file, but your home and core assets stay protected.
3. What Really Changed
The Act made trustee duties clearer—things like acting honestly, keeping records, and knowing who the beneficiaries are. Good trustees were already doing this.
If anything, families now have greater clarity about how their Trust should be managed.
Real-Life Stories
✅ Success – Margaret
Margaret thought her home-only Trust would be too much admin under the new Act. She declared it non-active for tax. Now she keeps full protection of her home, with no extra compliance.
⚠️ Failure – Helen
Helen wound up her Trust on her accountant’s advice that “the new Act makes it too hard.” Months later, her new partner moved in. The home that had been protected by the Trust became relationship property. After three years, her partner will be entitled to 50%.
The Bottom Line
The Trusts Act 2019 didn’t make family Trusts unworkable. In most cases, it just confirmed the sensible duties trustees already followed. With the right structure, your Trust can remain both protective and straightforward.
📖 Next step: Contact us to book a Trust Check. We’ll review your Trust and show you how to keep it compliant without unnecessary admin.
Disclaimer: This blog is general information only, not legal advice. The decision to wind up a trust has serious implications, including potential loss of asset protection and tax consequences. Please seek professional advice for your situation before taking any action.
