Open trust or savings account for new baby
Jul 14th 2018, 1:53 pm
#1
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Open trust or savings account for new baby
Any advice or suggestions. How does tax work?
not certainly staying in the US forever but for next few years we will be. International savings would be ideal, not sure if possible?
suppose $ savings are the best bet, or mixed currencies.
not certainly staying in the US forever but for next few years we will be. International savings would be ideal, not sure if possible?
suppose $ savings are the best bet, or mixed currencies.
Jul 14th 2018, 2:02 pm
#2
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Re: Open trust or savings account for new baby
If the father is domiciled within the UK for tax purposes, the baby will equally have a UK domicile. Creating a US trust for a UK domiciliary may be unwise and costly in terms of UK tax. A UK trust would be a foreign trust for US purposes and equally unpleasant in terms of possible US tax and reporting. Select investment options that are both US and UK tax friendly.
Jul 14th 2018, 2:42 pm
#3
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Re: Open trust or savings account for new baby
OK thanks., well we’re all currently in the US as tax resident, that should hold for a few years. Hard to be sure a long time into the future..
I guess savings can be transferred if long term changes are made, but there might be tax penalties.
i wonder what a U.K./US friendly investment might be. I expect it will stay accumulating until he is at least 18 and he has a US birth certificate. So would it matter where he lives?
i guess these are the sort of things I’m trying to work out before starting something naively that leads to losses down the line, just want to maximise what he gets vs. the taxman
I guess savings can be transferred if long term changes are made, but there might be tax penalties.
i wonder what a U.K./US friendly investment might be. I expect it will stay accumulating until he is at least 18 and he has a US birth certificate. So would it matter where he lives?
i guess these are the sort of things I’m trying to work out before starting something naively that leads to losses down the line, just want to maximise what he gets vs. the taxman
Jul 14th 2018, 4:43 pm
#4
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Re: Open trust or savings account for new baby
From a US (but not UK) perspective, the changes in the kiddie tax this year might just help a little (possibly)
