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According to English law, a trust is the ownership of property by the settlor to a trustee, whose task is to administer it on behalf of a beneficiary, in order to deliver the capital or income.
The trust is a unilateral act by which the person who created it entrusts his property to a third party (the trustee).
As a French person with assets in France, if you have the idea of moving to the United States, the creation of a Trust is a good idea.
Trusts exist in Common Law countries and have the effect of simplifying the settlement of the estate of the settlor who created the trust. The creation of a trust has a number of tax advantages in France.
The lawyers partners of Expert LLC USA are at your disposal to answer all your questions and to accompany you during the creation of the trust in order to organize your assets.
A trust, also known as a fiduciary, is an arrangement whereby an individual or company (settlor) transfers ownership of funds or property to another person (trustee) to manage for the benefit of one or more beneficiaries.
Moreover, when an owner or purchaser wishes to create a trust, it is often with the aim of separating his assets from his personal creditors, in a legal manner, without losing the benefit of them.
The creation of a trust can also be provided for in a will. In fact, the testator provides for the payment of the estate assets into the trust.
As regards the trustee, the advantage of the trust is that it is irrevocable. As a result, it is seen as a beneficial mechanism in matters of succession. Nevertheless, knowledge of the identity of the three parties involved is necessary.
However, the rules relating to the creation, operation, management and financial "protection" of the trust are quite complex. They are even more complex when the assets or the beneficiaries are located in different jurisdictions.
We advise you to call on the services of a specialized tax lawyer to set up your trust. This way, you will be able to avoid possible errors and avoid sanctions. The lawyers partners of Expert LLC USA are at your disposal to answer all your questions. Expert LLC USA puts you in contact with American trust professionals.
The trust is at the service of inheritance tax. It allows to protect the assets as well as the family. In the case of a couple holding a certain amount, it is preferable to set up a "family trust" in order to transmit the amount of the tax allowance in the form of a trust.
Upon the death of the first spouse, the surviving spouse (trustee) acquires the entire estate without having to pay inheritance tax. At the time of the death of the spouse, the trust will be distributed among the heirs of the deceased. This time, they will have to pay inheritance tax at an advantageous rate.
It should be noted that the taxation of inheritance tax depends on each state.
The trust is an excellent vehicle for tax optimization in order to minimize the amount of income taxes. It is possible to use this tax optimization on the estate at national as well as at international level. As a result, the tax burden of the successors will be reduced. There are also multiple options for international successions.
The Trust guarantees you anonymity. Indeed, it is seen as a contract and not as a legal entity. Therefore, it is not subject to registration. Thus, you have a perfect guarantee of the anonymity of the trustees and the beneficiaries. When the beneficiary is the trustee himself, the trust will allow him to obtain bank secrecy.
At the time of the creation of the trust, the administrator of this contract may be confronted with reporting obligations. This provision comes from article 1649 AB of the French General Tax Code. Thus, the declaration must be made each year, as soon as the settlor or one of the beneficiaries is a French tax resident or if an asset or a right held by the trust is located in France. If the declaration is not made, article 1736 IV bis of the CGI provides for a penalty of €20,000.
Furthermore, from a French tax perspective, the terms of the Trust may be problematic. Indeed, this contract is drafted by common law practitioners and may contain penalizing provisions from the point of view of inheritance tax in France.
A trust may contain a provision allowing the trustee to give a share of the assets held by the trust to the settlor's descendants. Consequently, in case of taxation in France, the share of the assets held through the Trust and given to the descendants will be taxed at 45%, failing the application of a progressive scale to each of the successors.
From a tax point of view, the reconciliation of this Common Law process with the French civil law legal system can generate significant difficulties.
Nevertheless, the trust constitutes an excellent patrimonial tool to better organize your patrimony. Expert LLC USA takes care of the formal creation of your trust. However, it is necessary to be accompanied by a legal professional (American lawyer) to better secure your rights. Expert LLC USA's partner lawyers are at your disposal to answer all your questions regarding the creation of a trust or its management.
