Abstract Transferring shares in a commercially operating company via donation or inheritance can lead to a significant tax burden, which in turn sometimes forces the beneficiaries to sell some of the shares received to pay their taxes. France thus has a preferential tax regime, allowing such donations or inheritances to be tax exempt at 75% of the transferred value. This preferential tax regime is often sought in family-owned companies, where the control of the business is thus better retained for the following generations, which generally leads to a greater stability of the company and hence to greater job security for its employees over time.
{"title":"Intergenerational transfer of (family) companies via the French preferential “Pacte Dutreil” tax regime","authors":"Christophe Jolk, Claire Schweitzer","doi":"10.1093/tandt/ttad040","DOIUrl":"https://doi.org/10.1093/tandt/ttad040","url":null,"abstract":"Abstract Transferring shares in a commercially operating company via donation or inheritance can lead to a significant tax burden, which in turn sometimes forces the beneficiaries to sell some of the shares received to pay their taxes. France thus has a preferential tax regime, allowing such donations or inheritances to be tax exempt at 75% of the transferred value. This preferential tax regime is often sought in family-owned companies, where the control of the business is thus better retained for the following generations, which generally leads to a greater stability of the company and hence to greater job security for its employees over time.","PeriodicalId":43396,"journal":{"name":"Trusts & Trustees","volume":"71 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135571161","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract There is a dearth of authority addressing what the test for capacity is where a settlor is exercising powers reserved to them under a trust instrument, and even less guidance as to the application of the law of undue influence to the exercise of such powers. The Grand Court of the Cayman Islands has recently grappled with both of these issues.
{"title":"Vulnerable settlors—capacity and undue influence","authors":"Clare Stanley","doi":"10.1093/tandt/ttad032","DOIUrl":"https://doi.org/10.1093/tandt/ttad032","url":null,"abstract":"Abstract There is a dearth of authority addressing what the test for capacity is where a settlor is exercising powers reserved to them under a trust instrument, and even less guidance as to the application of the law of undue influence to the exercise of such powers. The Grand Court of the Cayman Islands has recently grappled with both of these issues.","PeriodicalId":43396,"journal":{"name":"Trusts & Trustees","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135960008","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract In a judgment of 5 April 2022, the Court of Appeal of Ghent ruled on a case regarding the qualification of a distribution by Liechtenstein Stiftung under Belgian inheritance taxation. While the constitution of and the transfer of assets to a private foundation, or even a distribution by a private foundation after the death of the founder normally does not trigger Belgian inheritance taxation, the Court ultimately ruled that the distributions should be subject to inheritance taxation, based on the (perceived) existence of an ‘agreement’ between the wife of the founder, who was designated as the ‘first beneficiary’ and the second beneficiaries. This judgment raises a number of questions regarding the correct interpretation of the relevant Belgian tax provisions and the correct application of the applicable Liechtenstein legislation. This article provides an in-depth assessment of this judgment and serves as a cautionary tale for any private foundation which has a founder and/or beneficiaries resident in Belgium.
{"title":"Belgian court of appeal rules on inheritance tax treatment of a distribution by a Liechtenstein foundation","authors":"Niels Appermont","doi":"10.1093/tandt/ttad047","DOIUrl":"https://doi.org/10.1093/tandt/ttad047","url":null,"abstract":"Abstract In a judgment of 5 April 2022, the Court of Appeal of Ghent ruled on a case regarding the qualification of a distribution by Liechtenstein Stiftung under Belgian inheritance taxation. While the constitution of and the transfer of assets to a private foundation, or even a distribution by a private foundation after the death of the founder normally does not trigger Belgian inheritance taxation, the Court ultimately ruled that the distributions should be subject to inheritance taxation, based on the (perceived) existence of an ‘agreement’ between the wife of the founder, who was designated as the ‘first beneficiary’ and the second beneficiaries. This judgment raises a number of questions regarding the correct interpretation of the relevant Belgian tax provisions and the correct application of the applicable Liechtenstein legislation. This article provides an in-depth assessment of this judgment and serves as a cautionary tale for any private foundation which has a founder and/or beneficiaries resident in Belgium.","PeriodicalId":43396,"journal":{"name":"Trusts & Trustees","volume":"48 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135215521","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The case for (and challenges surrounding) increased de-enveloping within residential and commercial real property taxation","authors":"","doi":"10.1093/tandt/ttad051","DOIUrl":"https://doi.org/10.1093/tandt/ttad051","url":null,"abstract":"","PeriodicalId":43396,"journal":{"name":"Trusts & Trustees","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136177644","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Journal Article The case for (and challenges surrounding) increased de-enveloping within residential and commercial real property taxation Get access Trusts & Trustees, Volume 29, Issue 3, April 2023, Pages 175–177, https://doi.org/10.1093/tandt/ttad016 Published: 10 April 2023
{"title":"The case for (and challenges surrounding) increased de-enveloping within residential and commercial real property taxation","authors":"","doi":"10.1093/tandt/ttad016","DOIUrl":"https://doi.org/10.1093/tandt/ttad016","url":null,"abstract":"Journal Article The case for (and challenges surrounding) increased de-enveloping within residential and commercial real property taxation Get access Trusts & Trustees, Volume 29, Issue 3, April 2023, Pages 175–177, https://doi.org/10.1093/tandt/ttad016 Published: 10 April 2023","PeriodicalId":43396,"journal":{"name":"Trusts & Trustees","volume":"83 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134946787","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract A well-chosen third-party power holder and a well-drafted trust deed can result in better fiduciary decision-making in trust governance. This article examines the issues, considers the law, and provides some use cases.
{"title":"Third-party power holders under trusts—types, duties, powers, and use cases","authors":"Henry Brandts-Giesen, Jeremy Bell-Connell","doi":"10.1093/tandt/ttac128","DOIUrl":"https://doi.org/10.1093/tandt/ttac128","url":null,"abstract":"Abstract A well-chosen third-party power holder and a well-drafted trust deed can result in better fiduciary decision-making in trust governance. This article examines the issues, considers the law, and provides some use cases.","PeriodicalId":43396,"journal":{"name":"Trusts & Trustees","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136130751","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract In Grand View Private Trust Co Ltd v Wen-Young Wong [2022] UKPC 47, the Privy Council considered the proper approach to reviewing a Bermudan discretionary trustee’s exercise of a power to add and exclude objects where it was alleged that the power was exercised for an improper purpose. The Privy Council analysed the relevance to this inquiry of the trust’s overarching purpose, and considered the recently-prominent question of the existence of a so-called ‘substratum rule’. The decision is an important contribution to the ongoing conversation in the law of trusts and other fiduciaries regarding the review of powers for improper purposes.
摘要在Grand View Private Trust Co Ltd诉Wen-Young Wong [2022] UKPC 47案中,枢密院考虑了审查百慕大全权委托受托人在被指控为不正当目的行使权力的情况下行使增加和排除物体的权力的适当方法。枢密院分析了这次调查与信托总体目的的相关性,并考虑了所谓的“底层规则”的存在这一最近突出的问题。这一决定是对信托法和其他受托人正在进行的关于不正当目的的权力审查的讨论的重要贡献。
{"title":"Proper Purposes in Trustee Decision-Making: <i>Grand View Private Trust Co Ltd v Wen-Young Wong</i> [2022] UKPC 47","authors":"William Moppett","doi":"10.1093/tandt/ttad005","DOIUrl":"https://doi.org/10.1093/tandt/ttad005","url":null,"abstract":"Abstract In Grand View Private Trust Co Ltd v Wen-Young Wong [2022] UKPC 47, the Privy Council considered the proper approach to reviewing a Bermudan discretionary trustee’s exercise of a power to add and exclude objects where it was alleged that the power was exercised for an improper purpose. The Privy Council analysed the relevance to this inquiry of the trust’s overarching purpose, and considered the recently-prominent question of the existence of a so-called ‘substratum rule’. The decision is an important contribution to the ongoing conversation in the law of trusts and other fiduciaries regarding the review of powers for improper purposes.","PeriodicalId":43396,"journal":{"name":"Trusts & Trustees","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135473377","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The decision of the Board of the Privy Council in Grand View v Wong has given much greater prominence to the proper purpose rule in the context of the exercise by trustees of their powers. This article argues that, while the apparent desire of the Board to control abuse of trust arrangements is understandable, the judgment risks undermining trustee decision-making and encouraging litigation and unnecessary court applications.
摘要枢密院在Grand View v Wong一案中的裁决,在受托人行使其权力的情况下,更加突出了正当目的规则。本文认为,虽然董事会明显希望控制信托安排的滥用是可以理解的,但该判决有可能破坏受托人的决策,并鼓励诉讼和不必要的法庭申请。
{"title":"A proper headache: trust drafting and the proper purpose rule after <i>Grand View v Wong</i>","authors":"Tom McPhail","doi":"10.1093/tandt/ttad009","DOIUrl":"https://doi.org/10.1093/tandt/ttad009","url":null,"abstract":"Abstract The decision of the Board of the Privy Council in Grand View v Wong has given much greater prominence to the proper purpose rule in the context of the exercise by trustees of their powers. This article argues that, while the apparent desire of the Board to control abuse of trust arrangements is understandable, the judgment risks undermining trustee decision-making and encouraging litigation and unnecessary court applications.","PeriodicalId":43396,"journal":{"name":"Trusts & Trustees","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135906765","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}