Offshore Bond in Discretionary Trust - Taxation on Death
GMRJM
Member
Hello,
Looking for some help.
Client (a beneficiary) has received a payout from his late uncle's (the settlor) offshore bond in discretionary trust.
This happened on passing of the uncle last November (2024).
Am I correct to say the gain is assessed on the uncle? (Or is this assessed on the trustees?)
If the uncle, can top slicing relief apply?
Solicitors are also trustees and directing client (beneficiary) to an accountant to calculate tax due. Is this standard practice, or should they as trustees, be helping out with tax due?
Any help greatly appreciated!
Best regards
Comments
Did the bond end on the death of the uncle?
Hi Les,
Sorry, should have specified.
Yes - the bond ended then.
Thanks
The chargeable event happens immediately prior to uncles death then.
He was alive and UK resident then so he is liable.
His estate should be reporting the bond gain and paying tax. The estate can reclaim the tax from the trustees.
As he is personally liable top slicing etc applies.
The solicitors don't sound like they know what they are doing (or you have received incorrect details of the situation)
Les, thank you very much!
Re solicitors - incompetent. Very consistent too.