Testamentary Trust with a Canadian Trustee

Hi All,

Just wondered if I could get some guidance.

I’ve a client (UK settlor) who wants to set up a will, passing assets, mainly property and savings into a Discretionary Trust and IIP.

Now, one of the children is actually now resident in Canada.

I’m exploring setting up multiple trusts, one trust for each child (and their lineage). As I think from a longer term administration point of view, it’d be easier to manage, as there could be consequences to having trustees and beneficiaries made up of different jurisdictions - UK/Canadian.

However, if a will trust is set up, and a Canadian resident is nominated as the trustee, the assets are in the UK, what would the implications be from a UK and Canadian perspective on taxation and possibly the underlying taxation of any investments?

If the Canadian trustee acts alongside other UK based trustees would that change matters?

Maybe I’m over thinking this? As it involved a UK settlor, with UK assets, and income directed to a Canadian beneficiary would simply be taxed on their Canadian marginal rate. Similarly with regards to any gains on the sale of property.

Thoughts appreciated.

Thanking you in anticipation.

(STEP - Associate)