Hi, in 2008 my wife became the beneficiary of a trust based in the US. At the time she was living in the US and only a US citizen.
In 2010 she moved to the UK and in 2014 she became a dual UK-US citizen.
The trust was created from the death of a relative and at the time estate tax in the US was paid and an appraisal on the property was made.
Coming up soon the trust will end, the assets liquidated and the proceeds distributed to the beneficiaries.
I know that CGT will be payable on any gain in value in the US, looks like 15%.
We expect her share of the liquidation to be in the region of $950k (£684k). Her share when the trust was created was worth $500k (£360k). I guess that US CGT would be $67.5k (£48.6k).
The proceeds will most likely stay in the US and not be brought to the UK.
My question is - what are the consequences of the trust ending on her UK tax situation?
Thanks!
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