January 30, 2024

Square Pegs in Round Holes – You Like "To-May-To" and I Like "To-Mah-To"

January 30, 2024/ Ruchelman P.L.L.C.

In a post-COVID-19 world, anecdotal evidence suggests that individuals and families are relocating to new jurisdictions of residence. Equally, individuals have evidenced renewed vigor in acquiring and structuring assets across a range of jurisdictions. When the individual is a U.S. citizen and the place to relocate or acquire assets is the U.K., care must be taken to avoid common – and not so common – traps and pitfalls regarding taxation. In their article, Ed Powles, a Partner of Maurice Turnor Gardner, London and Emma-Jane Weider, the Managing Partner of Maurice Turnor Gardner, London, identify areas for which tax planning is crucially important prior to a move. Included are (i) tax residence and domicile rules for individuals, (ii) residence tests for trusts, companies, and charities, (iii) identifying areas for which income tax treaties do not necessarily provide relief against double taxation, and (iv) ways in which gift and estate planning, dissolution of marriages, forced heirship, and structures to own personal use residential real property are affected by the move.

November 29, 2022

Italy: New Clarifications Concerning the Taxation of Trusts and Beneficiaries

November 29, 2022/ Ruchelman P.L.L.C.

Tax authorities in much of Europe look at trusts as a tax gimmick used by the wealthy as a tool to dodge taxes. However, trusts are commonly used as a tool in estate and succession planning in connection with generational transfers of family assets and businesses, the achievement of charitable purposes, and the protection of vulnerable individuals. In this context, the Italian tax authorities released Circular Letter No. 34/E in October, providing guidance on several key issues surrounding trusts. It provides many important clarifications making trusts more attractive for individuals resident in Italy and international families having one or more beneficiaries resident in Italy or wishing to relocate to Italy. Andrea Tavecchio, the Founder and Senior Partner of Tavecchio & Associati, Tax Advisers, Milan, and Riccardo Barone, a Partner at the same firm, explain how Italian tax authorities will treat various types of trusts in a logical way.

September 27, 2021

Swiss Update on Trust Regulation and Taxation

September 27, 2021/ Ruchelman P.L.L.C.

Trusts have been of great importance to advisors all over the world. Even though trusts are mostly found in common law systems, several civil law jurisdictions have implemented the concept of trusts. To date, there is no such thing as a Swiss trust or Swiss trust law. However, Switzerland recognizes the concept of a trust. In their article, Peter von Burg, a partner at Burckhardt Ltd. in Zürich, and Matthias Gartenmann, a Swiss tax lawyer based in Zürich, provide an overview of taxation of trusts in Switzerland. One interesting aspect addressed in the article relates to Swiss administrative assistance in tax matters when the targets of the inquiry are a trust and its beneficiaries.

January 24, 2021

French Treatment of Foreign Trusts

January 24, 2021/ Ruchelman P.L.L.C.

The French Trust Register was introduced in December 2013 by a law enacted to stop tax fraud and serious economic and financial crimes. In October 2016, the French Constitutional Court ruled that public access to the Trust Register was unconstitutional. In the period since that decision, French authorities have issued two rulings allowing a broad class of persons to gain access to trust data. including tax officers, customs officials, professionals having compliance duties to combat money laundering and terrorist financing, journalists, and N.G.O.’s. Dimitar Hadjiveltchev, Partner, Adea Meidani, Counsel, and Loïc Soubeyran-Viotto, Associate, all of CMS Francis Lefebvre Avocats in Paris, address recent events regarding French tax treatment of foreign trusts and beneficiaries. They begin with the trust register – who must report, what must be reported and who have access – and move on to explain the myriad of taxes that may be imposed on trusts, settlors, and beneficiaries including income tax on distributions, inheritance and gift taxes, and real estate wealth tax.