Trust Addendum Form Template for England and Wales

A Trust Addendum is a supplemental document that amends or adds to the terms of an existing trust deed without replacing it entirely. In England and Wales it is used to update trustee powers, add or remove beneficiaries, vary investment policies, or make other permitted changes. The addendum must comply with any amendment power in the original deed and with the general law of trusts.

Where the original trust was created by deed, any amendment should also be executed as a deed to ensure it has the same legal force. For express inter vivos trusts in England and Wales, the Law of Property Act 1925 requires dispositions of equitable interests to be in writing. Execution as a deed, with signatures witnessed, is the safest approach and avoids challenges to the addendum's validity.

Trustees can only amend the trust deed if the original deed contains an express power of amendment and the proposed change falls within that power. If there is no such power, the amendment must be authorised by all the beneficiaries under the rule in Saunders v. Vautier (if they are all adults and absolutely entitled), or by a court order under the Variation of Trusts Act 1958.

Subject to the amendment power and the interests of beneficiaries, an addendum can update trustee investment powers to reflect the Trustee Act 2000, add protector provisions, update the trustee appointment and retirement procedure, extend the trust period, alter administrative provisions, update professional charging clauses, or correct typographical errors in the original deed.

It can. Under the Inheritance Tax Act 1984, changes to the beneficial class or the powers of the trust can constitute relevant property dispositions that trigger exit charges or affect the ten-year periodic charge calculation. Before executing an addendum that alters beneficial entitlements, the trustees should take tax advice to understand whether a chargeable event arises.

Yes. All current trustees must join in executing the addendum for it to be effective, as trustees must act unanimously unless the trust deed provides for majority decision-making (which is unusual). If a trustee is unable or unwilling to sign, their retirement and the appointment of a replacement trustee may need to be effected first.

For trusts holding registered land in England and Wales, any change to the trustees should be reflected at HM Land Registry. For trusts within the scope of the Trust Registration Service (under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 as amended), changes to the trust's registrable information must be updated on the TRS within 90 days.

Where there is a conflict, the addendum generally prevails as the later document, provided it was validly executed within the amendment power. However, if the addendum purports to amend a provision that is beyond the scope of the amendment power, the conflicting part of the addendum will be void and the original deed term will stand. Clear drafting that references and replaces specific clauses avoids ambiguity.