Trust Funds for the Queen's Children and Grandchildren

[Hallo girl]

A very interesting thread.
I have a question, though.
The idea is that the Queen Mother put her money into trustfunds for her greatgrandchildren so that they would not have to pay deathduty over it. Correct? And that Queen Elisabeth II did the same.
But I wonder. Any interest the receipients recieved and bulk at the end, would count as income. And therefor be taxed for incometax. So, how high is incometax and compared to deathtax? There seems to be quite a difference, otherwise they would not go through such lenghts.

Tax is a very complex subject, I am sure the RF have the best advisors to hand to secure their wealth( legally) just as other wealthy people have. There are lots of legal ways to protect your wealth .

 

[Hallo girl]

Could I just add I will never need to delve in to it, it is not a problem for me. !!!!

 

[muriel]

A very interesting thread.
I have a question, though.
The idea is that the Queen Mother put her money into trustfunds for her greatgrandchildren so that they would not have to pay deathduty over it. Correct? And that Queen Elisabeth II did the same.
But I wonder. Any interest the receipients recieved and bulk at the end, would count as income. And therefor be taxed for incometax. So, how high is incometax and compared to deathtax? There seems to be quite a difference, otherwise they would not go through such lenghts.

It really depends on where the Trust is located. Often, they are based in tax friendly jurisdictions, and income tax received by the Trust may not be subject to tax. So as long as the income is held by the trust and reinvested, no income tax is payable. If a UK resident receives income from a Trust, that will be taxable at normal rates of income tax. That said, the primary objective of these tax structures is to avoid paying Inheritance Tax on the capital.