Winding Up of the Trust

A trust is created for a purpose. When that purpose is fulfilled or no longer relevant, the trust must be closed the right way.

Winding up a trust is not just about distributing funds. It involves legal, tax, and compliance considerations. An incorrect closure can trigger tax liabilities, disputes, or regulatory issues long after the trust is supposed to be closed.

At N D Savla & Associates, we assist with the proper winding up of trusts, ensuring assets are settled, liabilities are cleared, and compliance is completed without loose ends.

What Does Winding Up of a Trust Mean?

Winding up of a trust refers to the formal process of closing the trust after achieving its objectives or when continuation is no longer required. This process must follow the provisions of the trust deed and applicable laws.

In practice, this means:

Settling all liabilities
Distributing remaining assets as per the deed
Completing tax and regulatory formalities
Closing trust registrations, where required

When Is Winding Up Required?

Trusts are typically wound up in situations such as:

Completion of the trust’s objectives
Merger or restructuring making the trust redundant
Replacement with a new or consolidated trust
Decision by trustees or settlor as per the deed
Regulatory or compliance-driven closure

Each scenario requires a tailored approach.

Our Trust Winding Up Services

Review & Advisory

Review of trust deed provisions for winding up
Advisory on legal and tax implications
Planning of closure process

Settlement of Liabilities

Verification and settlement of outstanding obligations
Review of employee or beneficiary payouts, if applicable
Coordination with trustees and stakeholders

Distribution of Assets

Advisory on distribution as per trust deed
Documentation of asset transfers
Compliance with tax requirements on distribution

Tax & Regulatory Compliance

Support for final tax filings, if applicable
Advisory on surrender or cancellation of registrations
Handling correspondence with authorities

Why Professional Handling Matters ?

Improper winding up can result in:

Unintended tax liabilities
Disputes among trustees or beneficiaries
Continued compliance exposure
Scrutiny from tax authorities

Closure needs the same attention as creation.

Why N D Savla & Associates ?

Clients work with us because:

We understand trust law and tax consequences
We manage the process end to end
We focus on clean exits with no future exposure
We handle documentation and authority interactions

No loose ends. No afterthoughts.

Speak to Us

If a trust has served its purpose or needs to be closed as part of a restructuring, it’s important to do it correctly.

Connect with N D Savla & Associates for professional assistance with winding up of trusts.