Paul and his wife, Margaret, live in South Africa, where they are resident and domiciled individuals. They owned a portfolio of investments and wanted to invest in a modest property in the UK. They came to the team at Nedgroup Trust to maximise the income from their holdings, as well as ensure their children benefitted from their wealth. Paul also wanted a means to remit his annual foreign investment allowance from South Africa and was interested in learning more about an interest bearing loan account.
They were particularly interested in an offshore Jersey trust. This is a flexible vehicle for individuals and families, whereby the discretionary trust gives the trustees full license to manage the assets of the trust as they see fit, and allow for the ability to change the structure and strategy of those assets as needed. This is particularly useful as and when circumstances change, such as an amendment in tax laws and/or if the trust’s beneficiaries choose to emigrate to a new country.
The wealth structuring process
We sat down with the couple to establish their main financial goals and objectives, which included:
Following the establishment of the trust, the trustees purchased a property to be owned by the trust and which was under the inheritance tax threshold of £325,000.
The property is now let out on a commercial basis and receives income, which is invested. In this case, the client did not wish to borrow against the property.
As an offshore trust is classified as a non-resident landlord in the UK, Paul is able to defer their taxable income to be paid the following tax year. This allowed for the property-related expenses to be matched off against the taxable income, resulting in a lower tax to be paid, if any.
Further to this, given the assets are held within the trust and do not form part of the clients’ estate, it would not be subject to probate, although this is limited to value of assets that the client has loaned to the trust.
We regularly provide articles and insights about money management to help you achieve your wealth goals. Sign up to receive these emails directly in your inbox.
Should you require any further information, please do not hesitate to contact your usual Nedgroup Trust relationship manager who will be happy to discuss the topic with you.
Or if you wanted to find out more about how Nedgroup Trust, or Nedbank Private Wealth, can help you plan and structure your wealth for your family and for future generations, please get in touch using the links to the forms towards the end of this page.
If you are interested in becoming a client, please complete the form via the ‘become a client’ button below. Alternatively, if you are already a client, or if you have a question about how we help clients in particular circumstances, please use the ‘contact us’ button.
We will get back to you as soon as we can during office hours, which are Monday to Friday, 8am to 8pm (UK time), except for UK public holidays.
Thank you for your interest in Nedbank Private Wealth. Please call us on +44 (0)1624 645000 or complete the requested information and one of our team will get back to you soon. We look forward to speaking with you.
* Required fields
Give us a call today on +44 (0)1624 645000 or please complete the requested information and one of our team will get back to you soon. We look forward to speaking with you.
Our office hours are weekdays from 8am to 8pm UK time, except for UK public holidays.
* Required field