Legal Question in Wills and Trusts in Florida
Foreign Trust
I and my son are the beneficiaries of a foreign trust located in the channel islands set up by the settlor (now deceased) who was not a US citizen. My son and I are. I wanted to close the trust down as the funds in it do not justify its existence, but face extreme resistance and un-cooperativeness from the Protector of the trust (for personal reasons he wishes to make my life difficult). Instead he has accepted a capital distribution to me as long as I set up another domestic US trust for my son. I have not signed any document promising to do this and therefore may not. They are compelling foreign tax reasons for not setting up a new US trust as there is a risk that the Settlor although deceased remains the same and the new trust would have a tax charge on it every ten years equal to 6 percent. Can the Protector sue me for not doing what he wants and using the capital distribution for something else such as buying a house? I should also point out the trustees were originally in favor of closing the foreign trust as I proposed. I would also have to consider what their reaction might be. I am prepared to forgo the remaining capital in the trust and hopefully my son could benefit from it one day if the Protector resigns. Thanks
1 Answer from Attorneys
Re: Foreign Trust
You need to see a trust lawyer. This type of problem is sufficiently complicated that it is impossible to give you any meaningful advice.
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