Holding your investments in a trust can be challenging – but it is possible
Using Czech Trusts for holding investment assets can be problematic due to negative tax consequences.
Some advisers tell their clients that they can solve this problem by simply putting the investment assets into the trust but leaving the returns outside the trust. However, we have tax advice that such a strategy is very unlikely to be effective. It has also been the subject of a consumer warning from APRSF – The Association for the Support and Development of Trust Funds
It IS possible to solve this problem, but a slightly more sophisticated approach is required. Because the solution is a little more complex, the costs of establishing a trust for investment purposes can be higher than for other trusts, but can still be very worthwhile for larger portfolios.
We always recommend a personal consultation to discuss investment solutions. As always, our first consultation is free. Contact us for more information.