Can anyone please provide any guidance on where to file a return when the trust has an American beneficiary?
Mihiri Gajraj
Trethowans LLP
What type of return, and in which jurisdiction?
Income, CGT, Succession/IHT, FATCA/CRS?
Peter Harris
www.overseaschambers.com
Reporting a capital distribution from a UK trust where the beneficiary is American
Mihiri Gajraj
Trethowans LLP
The problem is FATCA. You should file Form W-9 for the American beneficiary. The problem is that new form W-8BEN-E is not applicable assuming the american beneficiary is in fact a US Citizen or resident alien for US tax purposes.
The simplest way is to make the payment to the US beneficiary and tell the beneficiary in writing to make his or her own filings with the US IRS on Form 1040 disclosing the receipt of income from the UK Trust. His or her own local accountant can then make the filings in the USA including any State tax returns showing the receipt of income from the UK Trust.
I assume the usual UK filings are not applicable in this discussion.
Peter Double
Probate Resealing Services,