I am an non dom resident in UK with a holiday flat in Hong Kong which I am proposing to sell and declare the Capital Gain to HMRC. The residual value of the sale I intend to pass to my grandchildren by setting up two UK trusts whereby I gift in Hong Kong a share to my daughter and son ( both of them resident in UK but non doms) for them to establish UK trusts for their nieces and nephews. My objective is for me to avoid the 7 year IHT rule - there is a better chance for my son and daughter to survive the seven years! Would this course of action be permitted under the rules relating to indirect transfer of assets to grandchildren.
The alternative would be for me to set up an offshore trust in Hong Kong. In which case could the trustees be UK based - such as myself and my wife? In this case it would be my intention to remit income to the UK annually ( paying UK tax) and distribute to beneficiaries.
Grateful for your advice
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