Successful removal of two taxation liabilities
The deceased died having made a lifetime gift into an offshore trust. The trust documentation contained an error in the date of the trust deed, so we had to obtain evidence with the help of the beneficiaries and the trust company, to prove the trust was created outside the seven year period prior to the date of death.
The estate was taxable and a profit was calculated prior to the sale of the stocks and shares, which would mean there would be a Capital Gains Tax liability. We were able to save Capital Gains Tax by “appropriating” or “notionally transferring” some of the shares to the beneficiaries. The remainder of the shares were sold by the executors to settle the liabilities in the estate utilizing the executors’ annual exemption and the appropriated shares were sold as bare trustees utilising the beneficiaries’ annual exemptions. As a result, no Capital Gains Tax was payable.