TSEM5905 - Trusts for particular purposes: trusts administered by the Official Solicitor/Public Trustee - Official Solicitor/Public Trustee - introduction
Background
The official Solicitor and the Public Trustee are separate public sector trust corporations, but both posts are in fact held by the same individual. Since 1 April 2001 there has been just one office undertaking the statutory functions of the Official Solicitor and the Public Trustee.
The Official Solicitor acts as executor of administrator of an estate, or as trustee of a trust, as trustee of last resort. He will generally act either where there is no-one else willing or able to do so, or where he has been specifically appointed by the Court to act.
The Public Trustee was established in 1906 to act as a reliable public sector corporate trustee for people who wanted to set up trusts during their lifetime. Now that there are suitably qualified corporate trustees to whom assets can safely be entrusted the need for such a corporation has been eroded, and the current policy of the Public Trustee is to act only as trustee of last resort, on the same basis as the Official Solicitor.
Cases handled by Official Solicitor/Public Trustee
The main categories of case handled by the Official Solicitor and Public Trustee are:
- Grants for minors - see TSEM5910
- Grants for patients - see TSEM5915
- Trusts arising out of Court proceedings - see TSEM5920
- Guardian of a minor’s estate - see TSEM5925
- Criminal Injuries Compensation Authority trusts - see TSEM5930
- Vaccine Damage Payment Act 1979 - see TSEM5935
Tax treatment
The tax treatment of the various trusts administered by the Official Solicitor/the Public Trustee follows normal tax principles. Trusts currently subject to income tax at the special trust rates include:
- statutory trusts for minors entitled to capital at 18; and
- disabled persons’ trusts (as defined in section 89 IHTA 1984) including trusts arising from Court proceedings.
Trustees’ fees
There is specific statute on the Public Trustee’s remuneration. The current fees order is the Public Trustee (Fees) Order SI 1999 No. 855. That provides that all fees are payable out of capital except those specified in the Order. Only those costs specifically chargeable to income by statute are allowable TMEs.
