TSEM6270 - Legal background to trusts and estates: parol trust

A parol trust (more commonly called an oral trust) is one created verbally by a settlor. It can be as binding as a written trust.

If it does not come into being until after the death of the settlor, it cannot be a will trust. It exists outside of the will.

This is subject to Section 53 Law of Property Act 1925 where land is involved.

Send all such cases to HMRC Trusts Head Office, Edinburgh.