Protective Property Trusts

As we are approaching a year living permanently in the UK we are working to get new wills sorted out to replace our USA-based ones. We have been recommended to add a Protective Property Trust to the will in order to protect our UK home for ourselves and our heirs in future.

We will in future have income from US and UK investments, and social security pensions, as well as various private pensions from the UK and USA, and our only property is in the UK now.

Does anyone have advice about whether this would impact our ongoing US tax situation for future years? Will it complicate any of the required reporting (e.g FBAR as well as tax returns)? Would it create any problems down the line in either country?

I cannot believe that anything with the word "trust" in its name will be straightforward for both the US and UK tax authorities!

A protective property trust I think is a mechanism to try and avoid  the value your home being used in determining or paying for care home costs should you need it.

We decided not to go down this route partly because of the added complications of owning a foreign trust when filing US taxes.

A protective property trust I think is a mechanism to try and avoid  the value your home being used in determining or paying for care home costs should you need it.

We decided not to go down this route partly because of the added complications of owning a foreign trust when filing US taxes.

Thank you. I thought this might be the case. Trusts sound like a minefield!

I’d not have anything worded ‘Trust’ in a Will. The beneficiary of the foreign trust would really have a massive problem with the IRS. Filing 3520 and 3520-A is not for the faint hearted and imho would require professional interaction. GC holders, USC’s & foreign Trusts just don't work, unless you’re high net worth.

Is there a US and UK legal opinion on the tax consequences from whoever is selling this product to you?

Is there a US and UK legal opinion on the tax consequences from whoever is selling this product to you?

No, this is a local UK will writing service, so they do not have knowledge about US tax implications. That's why I appreciate the useful responses from you folks on the forum