British Expats

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-   -   UK beneficiaries from US will (https://britishexpats.com/forum/usa-57/uk-beneficiaries-us-will-880436/)

GIGIBRIT Jul 15th 2016 5:42 am

UK beneficiaries from US will
 
I checked the existing forums but only found responses from 2008 so hope I am not being redundant with my questions. I am a British citizen, planning on leaving bequests in my will to friends and family in the UK, all British. Does anyone know the likely tax implications? I am working with a US living trust lawyer but she is not familiar with international law. Thank you!

Cook_County Jul 15th 2016 9:37 am

Re: UK beneficiaries from US will
 
If you are domiciled within the United Kingdom (as it sounds from your question) the transfer during lifetime to a US living trust could trigger an immediate lifetime IHT charge. Transfers on your death to UK beneficiaries could expose them to higher rates of UK tax on stockpiled gains within the trust. Ask your US lawyer to instruct a specialist within the UK.

bruceba Jul 15th 2016 11:38 am

Re: UK beneficiaries from US will
 

Originally Posted by Cook_County (Post 12003104)
If you are domiciled within the United Kingdom (as it sounds from your question) the transfer during lifetime to a US living trust could trigger an immediate lifetime IHT charge. Transfers on your death to UK beneficiaries could expose them to higher rates of UK tax on stockpiled gains within the trust. Ask your US lawyer to instruct a specialist within the UK.

I think the OP is in the US.

Cook_County Jul 15th 2016 1:35 pm

Re: UK beneficiaries from US will
 

Originally Posted by bruceba (Post 12003177)
I think the OP is in the US.

From a UK tax perspective, simply moving to the US and living in the States on a long-term basis do not become sufficient acts by themselves to remove a domicile of origin that was in one of the nations that constitute the United Kingdom.

mrken30 Jul 15th 2016 2:05 pm

Re: UK beneficiaries from US will
 
This document is a little old, but may help with asking the right questions

http://clients.squareeye.net/uploads...109_watson.pdf

GIGIBRIT Jul 15th 2016 6:14 pm

Re: UK beneficiaries from US will
 
Thanks for all the responses. It might be worth a consult with a UK lawyer to find out the current regulations.

Pulaski Jul 15th 2016 7:07 pm

Re: UK beneficiaries from US will
 

Originally Posted by Cook_County (Post 12003301)
From a UK tax perspective, simply moving to the US and living in the States on a long-term basis do not become sufficient acts by themselves to remove a domicile of origin that was in one of the nations that constitute the United Kingdom.

But staying in the US into old age and/or with a degenerative illness, and then dying in the US likely does change his domicile.


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