[WSBAPT] United Kingdom real property transfer to a WA Trust or LLC- referral?

[Katie Smith Patel]

In this type of scenario, I have typically requested the client engage foreign counsel not only for the deed but either to prepare the trust or other structure itself, or to advise on the effects of holding the foreign assets in a US-based trust or LLC.  I would not fund foreign assets into a US trust or LLC until receiving that advice.  As residence/domicile is at issue, it would be important to clarify and resolve that before proceeding further.

Katie Patel
Paraclete Estate Planning, LLC
(541) 499-9085 (direct)
112 Genessee Street
Medford, OR 97504



From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Sarah McCarthy
Sent: Wednesday, July 31, 2024 8:44 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>; Elder Law Section <elder-law-section at list.wsba.org>
Subject: [WSBAPT] United Kingdom real property transfer to a WA Trust or LLC- referral?

Does anyone have experience in creating a trust or an LLC holding company to hold title to real property in the UK?  The owners used to be WA residents, and are US citizens, but I'm unsure on present and future residency status.

I have no experience on this issue, and would be glad to hand them off to someone who does have experience on this. Though I would also welcome any templates or other guidance someone may want to offer.

I'm also aware, via my bit of googling, that UK tax treatment of trusts is an issue to be considered, so I'm wary of wading into this. 5 Issues for UK Resident Beneficiaries of US Trusts - Ingleton Partners Ltd<https://www.ingletonpartners.com/insights/5-issues-for-uk-resident-beneficiaries-of-us-trusts/>

I also found this article via google that recommends an LLC holding company for this purpose. International-Estate-Planning-for-U-S-Citizens-An-Integrated-Approach.pdf (phillipsnizer.com)<https://www.phillipsnizer.com/siteFiles/24533/International-Estate-Planning-for-U-S-Citizens-An-Integrated-Approach.pdf>

I do understand that local counsel in the UK would need to prepare the deed to convey the property into whatever trust or LLC is established.

Generally these seem like muddy and complex waters and I'd be glad to hand these folks off.

Thanks!

Sarah


Sarah O’Farrell McCarthy

(Pronouns: she / her)
Attorney, Partner | Kelly, Arndt & Walker, Attorneys at Law, PLLP
P.O. Box 290 | 6443 Harding Avenue | Clinton, WA  98236

(Located on Whidbey Island, Island County, Washington)
Phone: (360) 341-1515 | Fax: (360) 341-3272
sarah at kawlawyers.com<mailto:sarah at kawlawyers.com> | www.kawlawyers.com<http://www.kawlawyers.com>



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