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HMRC internal manual

Trusts, Settlements and Estates Manual

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 & Estates Technical Edinburgh.