What are the implications of receiving an estate from overseas?
The use of trusts in New Zealand is widespread. However, the obligations and implications of using these trusts are not as well understood. We regularly advise on the use of trusts and the implications for settlors, trustees and beneficiaries.
We have extensive experience in the New Zealand tax treatment of the distributions of overseas trusts. This is a complicated area with many pitfalls.
Many recent migrants from the United Kingdom may not be aware of the implications that they may still be subject to United Kingdom Inheritance Tax. Inheritance tax can also affect New Zealanders who continue to retain assets in the United Kingdom. At 40%, Inheritance Tax can represent a significant tax burden.
We regularly work with clients and their United Kingdom advisors to minimise its impact. We are an acknowledged expert in this field having recently presented to the New Zealand Institute of Chartered Accountants and the New Zealand branch of the Society of Trust and Estate Practitioners on the topic.