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UK beneficiaries from US will

UK beneficiaries from US will

Old Jul 15th 2016, 5:42 am
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Question 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!
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Old Jul 15th 2016, 9:37 am
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Default 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.
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Old Jul 15th 2016, 11:38 am
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Default Re: UK beneficiaries from US will

Originally Posted by Cook_County View Post
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.
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Old Jul 15th 2016, 1:35 pm
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Default Re: UK beneficiaries from US will

Originally Posted by bruceba View Post
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.
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Old Jul 15th 2016, 2:05 pm
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Default 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
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Old Jul 15th 2016, 6:14 pm
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Default 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.
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Old Jul 15th 2016, 7:07 pm
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Default Re: UK beneficiaries from US will

Originally Posted by Cook_County View Post
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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