Final steps in changing from trust to CIO

Dear All,

We managed to apply to the Commission to change from being a charitable trust to being a CIO. And they approved the application! Hurrah! So we now have the two charities on the register - the trust and the CIO.

The next bit - the transfer of assets and dealing with the trust - is what's less clear and there's not so much information out there. Everyone makes it sound simple, but no one seems to really explain HOW to do it, at least not properly.

If anyone can advise on whether I've got the following order of steps correct I'd really appreciate it please. We don't have any property, endowments or pensions - just cash in a range of accounts and about £2k in sound equipment. So, in theory it ought to be simple, yes? There are several things I'm just not sure about (in italics):

1. Set up new bank account for CIO. Do we have to wait until we get this first step completed before we can progress through the subsequent steps?

2. Meeting of trustees of trust - agree to transfer of assets to the CIO.

3. Meeting of trustees of CIO - agree to receive assets of the trust.

4. Meeting of trustees of both charities - sign transfer agreement. Could steps 2, 3 and 4 could be done together at a joint meeting? I've found a transfer agreement template from Third Sector Leaders Kirklees. Would this be good enough?

5. Approach Commission for approval to transfer assets to CIO. Go to:

a. https://forms.charitycommission.gov.uk/tell-us-about-something/

b. and then choose Transfer assets to another charity under section 267 of the Charities Act 2011??? The Commission website is not very clear!

6. Wait until get Commission approval.

7. Ensure all monies are transferred from the trust accounts to the new account(s) on the day of transfer? Seems impractical. Would signing the transfer agreement mean that the assets belong to the CIO on the date agreed even if they are still in accounts in the name of the trust?

8. Close bank accounts in the name of the trust.

9. Prepare final inspected accounts for the trust.

10. Apply to the Commission to close the trust:

a. https://forms.charitycommission.gov.uk/Closing-or-Changing-a-Charity-Structure/

Then do I choose ‘Close a Charity’ or ‘Merge one or more charities’? But what about retaining the trust as a shell in case money is left to us in a will?

11. Once trust is closed, enter details of closed trust onto the list of merged charities? Would this mean we didn't need to retain it as a shell?

If anyone can advise me please I would be really grateful.

Many thanks,
Victoria

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