Californian Family Trust Guidance

rnushnaks

Hello!

I have (or am about to) become the co-trustee/beneficiary of a Californian Family Trust. The Trust is "shared???" equally between my two siblings (dual US/British citizens and residents there since birth) and I (British Citizen, resident in the UK since birth). Now that our parents have passed we need to begin the process of winding up the Trust so we can realise the benefits, at least that's what I understand we need to do.

One US sibling will be moving forward with all the death bureaucracy but I understand I'll need begin a process in the UK to ensure that I am able to receive fully my share of this Trust.

If anyone has clear advice regarding next steps and what appropriate professional services I need to engage, that would be great, thanks!

flexyfox

https://forums.moneysavingexpert.com/discussion/6679549/californian-family-trust-guidance

This sounds like a situation where getting advice from someone familiar with both UK and US trust and tax rules would be really important. The California side and the UK tax implications could be quite separate, so a cross-border tax adviser or solicitor would probably be the best place to start. It would also be worth getting advice before any distributions are made.

RAS

You need to be aware of Californian laws, US rules and any relevant UK laws.

Where were the parents resident when they died?

poseidon1

Questions -

• Were your parents UK or US tax resident prior to death?
• Which parent created the trust , what were the assets settled therein and current approx value?
• Who are the current named trustees, and had a US attorney already been retained by your parents in the trust administration?

In the meantime, if you are not already an appointed trustee and there is no other UK resident trustee do not agree to be appointed.

If the trust does not already have a UK tax footprint, the last thing you should be doing is inadvertently trigger this happening by taking on trusteeship of an entity you clearly do not understand.

Unless this trust has a reasonably high 6 figure value, the bad news for you is solicitors or tax accountants with the relevant cross border tax and legal understanding are expensive, not in abundance and will need to be STEP qualified ( Society of Trust and Estate Practitioners).

You should consult the STEP directory to source a practitioner in your area, although I would hazard a guess London would be best bet to find them in sufficient numbers. Link to STEP directory below -

https://www.step.org/about-step/public

Pending obtaining professional advice familiarise yourself with the aims and objectives of such trusts per article below -

https://anthoorlawgroup.com/what-you-need-to-know-about-family-trusts-in-california/

I hope your USA based siblings have been suitably briefed prior to your parents death on the necessary US process for successfully winding up the trust for all concerned.

My experience in the UK is that parents who have not retained professional advisers, rarely ( if at all) prepare their children for this task with regard to UK trusts.