Forsters' Private Client department has a team of lawyers who are dedicated to advising clients in relation to US-UK cross border matters, including personal tax, trust and estate planning. Although the team does not directly provide US tax or legal advice, it is well-placed to work effectively with US-connected clients and their advisers, thanks to a broad awareness of US tax issues and how they interact with UK taxation.
Individuals with personal and financial connections in both the US and the UK will find they are required to navigate two very different and complex tax regimes. It is essential for clients in this position to have access to integrated advice concerning their tax exposure and reporting obligations. It is also vital for their advisors to have a clear understanding of the interaction between the two regimes, which will allow them to carry out tax efficient planning.
Members of the US/UK team travel to the US regularly to meet clients and intermediaries there. Our experience in this area includes the following:
- Estate planning for families with tax exposure in the US and the UK.
- Working with US counsel to draft revocable trusts that will serve as a probate substitutes in the US, while constituting bare trusts (or nominee arrangements) for UK tax purposes.
- Excluded property trust planning for US citizens prior to their becoming deemed domiciled in the UK for inheritance tax purposes.
- Gift planning for US citizens using family limited partnership structures where UK inheritance tax considerations prohibit the use of trusts.
- Foreign grantor trust planning for non-US individuals with US family members.
- Advising UK resident individuals on mitigating the risk of double taxation on income from US LLCs.
- Working with US counsel to draft irrevocable life insurance trusts for US citizens who are living in the UK, and providing associated tax advice concerning the treatment of the trusts in each jurisdiction.
- Advising US citizens on the use of the EU Succession Directive to circumvent ‘forced heirship’ rules that would otherwise apply to assets held in many continental European jurisdictions.