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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10262
Experience:  I have been practising for 30 years.
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My two daughters have a trust fund set up by their father on

Customer Question

My two daughters have a trust fund set up by their father on his death. Their father was a British national but had been domiciled and working in Arizona, USA in the 10 years before his death. The elder daughter is now 40 and under the terms of the trust she can receive full payment of the remainder of her share of the trust. My daughters have made withdrawals approved by the trustee their father's brother and the terms of the trust over the past 20-15 years. I believe the funds are held in an offshore account and the funds would count as originally US assets from there father's earnings. The issue now is what UK tax should be paid on the funds and their distribution?
Submitted: 1 year ago.
Category: Law
Customer: replied 1 year ago.
The trust fund is currently held in a US bank account. There are two trustees. One is domiciled in the UK, the other in the US.
Expert:  Nicola-mod replied 1 year ago.
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Customer: replied 1 year ago.
please continue to find an expert to answer my question.
Expert:  Nicola-mod replied 1 year ago.
We will continue to look for a Professional to assist you.
Thank you for your patience,
Expert:  F E Smith replied 1 year ago.

Was tax paid in the United States? If tax was paid in the United States, then there is no tax to pay on bringing the income into the UK.

Worry do you mention that the elder daughter is now entitled to full payment of the remainder of her share of the trust, you don’t mention the younger daughter?

How old is the younger daughter? Is she entitled to the trust fund at aged 40?

If both daughters agree, then under the ruling in Saunders v Vautier (Google will give you plenty of reading) the trust can be brought to an end and they can have the trust fund divided between them. The trustee doesn’t have to agree.

Can I clarify anything for you?

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We can still exchange emails.

Best wishes.