Will Trust non resident beneficiary

trust registration and tax as non-resident

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A non-resident client is drafting their will with a new spouse .  They have UK property which is let out.  The owner is setting up a Will trust which in the event of their dying first the net rents will be remitted to the spouse until they die. At this point, the property reverts to adult UK resident children who I also act for. 

The chap is in his late 70's and has some health issues.   New wife in her mid 60's so it looks like this one will land and go on for some time. 

For an interest in possession trust so long as the income is remited direct, its taxed on the recipient.  No SA900 required, no trust accounts, easy street. 

However as this is overseas beneficiary, does this change? Or it is just NRL3 and remit away happily?  I cant seem to find anything to suggest otherwise, or indeed anything to confirm this is OK.

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By Tax Dragon
31st Mar 2023 16:04

NRL3? Non resident trustees? As well as the beneficiary?

The obligations on the trustees are likely to depend, I would think, on where (under which jurisdiction) it is constituted. Which is presumably where they live, as it makes sense that the will is drawn up there. Or is this a separate UK will to deal with UK assets?

It's always amused me that the UK is not on the list in TSEM10423. I'm easily amused, me.

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Replying to Tax Dragon:
By ireallyshouldknowthisbut
31st Mar 2023 16:15

I think I am getting confused again.
The (potential) beneficiary is nonresident.
One the trustees will be, one UK [its one of his kids, one of hers]
The will is in one country, but my UK client suspects the widow (when it happens) will move back 'home' to a third country where her daughter lives.
Both countries appear on the list TSEM10423 as Baker

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Replying to ireallyshouldknowthisbut:
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By Tax Dragon
31st Mar 2023 16:21

So the jurisdiction is where the will is but the residence depends on the settlor's domicile (iirc... it's one of those many many things I look up when it matters to me).

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Replying to Tax Dragon:
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By Tax Dragon
31st Mar 2023 16:25

I make it sound like the will is a bearer document. I mean where it is written, stamped, authorised, enforced... whatever the correct legal term is.

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