# Setting up a Trust under S.189A (Special Trusts for Incapacitated Persons)



## Bonafide (13 May 2013)

I would be grateful for any help in the following matter. I am in the process of trying to set up a Trust under S.189A (Special Trusts for Incapacitated Persons). I am a little unsure of how to proceed and I know it is best to set these things up correctly from the outset. 

Some advice I have read has pointed towards setting up a a company limited by Guarantee and then applying to the Revenue for non profit making status.

Companies are expensive to set up using the off the shelf agents, can you do this yourself?
Does this lead to auditing costs annually?
I understand there must be 7 participators, do they all have to be directors?
I also understand that family members of the beneficiary of the trust cannot be trustees, then how many of the participators / directors of the company are required to be trustees?

Thanks in advance, I am sure I will have more questions...


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## Bronte (14 May 2013)

This is very complicated Bonefide.  Are you not hiring a solicitor?


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## Bonafide (27 May 2013)

It appears a little less complicated than I though. A pro-bono trust agreement from our local solicitor, letter from the surgeon re the beneficiary, apply to the revenue (considered on an individual basis).

Anyone aware of anything else to be considered?


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## slippy (18 Jun 2013)

Hi Bonafide, all,

I am investigating the same at present - under Revenue's rules for Special Trusts for Permanently Incapacitated Individuals.



> I also understand that family members of the beneficiary of the trust cannot be trustees


Are there guidelines on how close/distant a relative is forbidden?  I came across this on taxworld.ie, so I presume it needs to be family friends or similar:





> A person shall be connected with an individual if that person is the individual’s husband, wife or civil partner, or is a relative, or the husband, wife or civil partner of a relative, of the individual or of the individual’s husband, wife or civil partner.




One item concerning me is the tax implications for the parents of the child.  If the trust is set up correcly (the parents clearly not being trustees), are there tax implications?



> I understand there must be 7 participators, do they all have to be directors?


Under the trust this is not the case. Too many trustees could make the trust difficult to manage.  If a trustee is no longer able to continue for whatever reason, who has responsibilty/power to appoint new trustee(s)?

Does anyone think a conversation with Revenue in advance of asking the solicitor to draw up the deeds would be beneficial?   A solicitor will know the legals on the trust, but perhaps not the tax implications for the parents of the child.

Any advice apprciated.


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## Bonafide (6 Aug 2013)

Sorry for the late reply. In our case there are only friends and distant cousins on the committee / Trustees. In our case the application is for an adult and not a child. Sorry I am not much help to you.


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## Bonafide (6 Aug 2013)

I did speak to Revenue in advance and found them to be very helpful in pointing us in the right direction.


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## slippy (6 Aug 2013)

Cheers.  Found Revenue very willing to help, but it was hard to speak to someone who knew the situation in relation to minors.  We need a solicitor anyway so hopefully he can clarify things.  Thanks for your help.


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