The background is as follows: a Scottish Will, but probate obtained on basis of deceased’s English domicile. The Will provides that the residue is held for the deceased’s minor child contingent on attaining the age of 21, but income can be used for maintenance education and benefit, and capital can be advanced. The minor child is resident in Denmark.
The Will Trust is subject to Scots law.
The Will trust has not yet been funded (everything on hold in light of a 1975 Act claim).
The current trustees of the as yet unfunded Will trust are 3 UK resident individuals.
The plan is that 2 additional trustees will be appointed and one of the existing trustees will retire. Of these 2 trustees to be appointed, one is UK resident, the other is resident in Sweden. Under Scots law, residence abroad is no bar to trusteeship (although by statute it is a ground on which in certain circumstances the court may remove a trustee).
The Swedish resident is being asked to confirm that there are no adverse consequences for herself or the trust as far as Swedish law is concerned (given how Sweden may or may not view the concept of a trust).
My question is in relation to UK CGT: Presumably since all other trustees are resident in the UK, a deed of appointment where by 2 additional trustees are appointed (1 UK resident and 1 non-UK resident) and the retirement of one UK resident trustee will be neutral as far as CGT is concerned. The trust has not migrated, only 1 out of the 4 trustees would be resident abroad, and presumably there would be no liability for the past trustee under s82 TCGA 1992. I think I have answered my own question but should be grateful for any comments anyone has.
Gedye & Sons