Death and taxes in multiple jurisdictions

The Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill has had its third reading and now awaits assent. One aspect of the increased trustee tax rate will be the application to testamentary trusts that cannot be fully distributed in the permitted time-frame.

While many estates are administered efficiently and without tax implications. This is not always the case. The Royal Court of Jersey decision in Representation of Viberts Executors Limited and Anor while able to be limited to its particular facts nevertheless reflects a timely reminder of the complications that can arise where a deceased has assets in multiple jurisdictions. The background of Representation of Viberts Executors Limited and Anor is set out at [1]of the Royal Court of Jersey decision as follows:

The relevant considerations include:

However, Walmsley can be distinguisher where the failure to meet taxes in other jurisdictions is to the trustee’s peril or that there may be benefit to the beneficiaries for taxes to be paid. As noted at

The incidences of tax in different jurisdictions are highly fact specific. However, such matters are not to be lightly disregarded.

References:

• Representation of Viberts Executors Limited and Anor [2024] JRC 055
• Re S Settlement [2001] JLR Note 37. 
• Mark Bolan Charitable Trust [1981] J.J.117. 
• The Estate of Walmsley (Deceased) [1983] J.J.35. 
• X Settlement and Y Settlement Unreported Judgment 1994/110. 
• Re Tucker [1987-88] JLR 473. 
• Re Williams [2009] JRC 054. 
• Mitchell v Mousir 18 May 1907 (77 Exs308)