iTrust Horizon
Specific Overseas Asset & Succession Trust
Key Features of iTrust Horizon
iTrust Horizon is designed for clients who own a specific overseas asset, such as a holiday home or a foreign property-company interest, and want to coordinate its succession and eventual realisation without requiring the full international architecture of Global Shield.
The overseas property ordinarily remains locally owned, while Horizon provides the UK Trustee framework capable of receiving appropriate sale proceeds, company interests, foreign investments or other transferable value once legally available.
Benefits
The Right Route for the Overseas Asset
Your overseas property ordinarily remains locally owned and outside the UK Trust while it continues to exist as land or a building. We review how it is owned, how it should pass on death, whether a company or SPV is involved and what should happen when it is sold or otherwise realised.
Local Property – UK Trust Coordination
Foreign land and buildings remain under the ownership and law of the country where they are situated. Horizon coordinates succession, future sale or realisation and the later settlement of transferable value into the Trust.
Property Company Flexibility
If your overseas property is held through a company or SPV, the Trust can potentially hold the relevant shares, securities or shareholder-loan rights instead of the building itself.
Keep Using the Property Under Its Existing Ownership
Because the overseas property ordinarily remains outside Horizon, your right to use a holiday home continues under the existing personal or company ownership arrangements.
Clear Rental Income Ownership
Who receives the rent follows the actual ownership of the property. If you own the property personally, the rent remains yours. If a company owns it, the rent belongs to that company.
Sell, Realise & Settle the Proceeds
Once mortgages, taxes and sale costs have been dealt with, suitable net proceeds can be proposed as a gift to Horizon. The Trustees can then hold or reinvest that value in cash, investments or other appropriate transferable assets.
Continuing Property Management
If you continue to own the property personally, you can continue to manage it in the usual way. If it is company-owned, you may continue in a genuine management or company role where the company's rules allow.
Local-Law Coordination
We work around the legal and tax requirements of the country where the asset is situated. Local professional input may be required for succession, ownership, sale, taxation or company matters before value is transferred into Horizon.
How an Overseas Asset Can Fit Into Horizon
The right route depends on what you actually own. Horizon does not treat foreign property, company interests and financial assets as though they are the same thing.
Personally Owned Overseas Property
The land or building ordinarily remains outside Horizon while it continues to exist as foreign immovable property.
Horizon can coordinate succession, intended sale or realisation and the later settlement of suitable net proceeds or other transferable value.
Property Company or SPV
Where a company owns the property, the company continues to own the building, receive rent and deal with the property under its local rules.
Subject to legal and tax review, Horizon may potentially receive transferable shares, securities or shareholder-loan rights.
Foreign Financial Assets
Suitable foreign cash, bank, custody or investment assets may be capable of being transferred directly to the Trustees, subject to local law, provider requirements, tax, reporting and Trustee acceptance.
Realised Sale Proceeds
After an overseas asset is sold and mortgages, taxes, costs and other liabilities have been dealt with, suitable net proceeds can be considered for settlement into Horizon.
The transfer into the Trust is separately reviewed and documented.
Additional Features
UK & Local Rules Need to Work Together
Overseas assets can still be relevant to UK Inheritance Tax depending on the owner's UK residence history and the law applying at the time.
We review the UK position alongside the tax and succession rules of the country where the asset is held and again before material value is settled into Horizon.
Local succession and forced-heirship rules are considered before any foreign ownership structure is changed. An English trust does not override mandatory foreign law.
The Trust is administered through professional Trustee governance. The tax residence of the Trust is determined separately from the location of the overseas asset.
International Planning Without Unnecessary Complexity
Horizon is designed for a defined overseas asset or a limited foreign-asset requirement rather than a globally complex estate.
It coordinates the overseas asset with your wider estate plan while respecting local ownership, local law and the tax position in each relevant jurisdiction.
If your circumstances later become more international through relocation, overseas beneficiaries, several jurisdictions or substantial foreign companies and investments, the planning can be reviewed to determine whether iTrust Global Shield is more appropriate.
Getting Started
Speak with an iTrust Adviser about the overseas asset, how it is currently owned, the country involved and what you would like to happen to it in the future.
Contact UsFrequently Asked Questions
Does my overseas property get transferred into Horizon?
Ordinarily, no.
Foreign land and buildings normally remain under their existing local ownership and outside the standard Horizon Trust while they continue to exist as overseas property.
Horizon coordinates succession and future realisation and can later receive suitable proceeds, company interests, investments or other transferable value where appropriate.
Can I continue using my holiday home?
Because the overseas property ordinarily remains outside Horizon, your use of the property continues under its existing personal or company ownership arrangements.
Horizon does not itself create a new occupation right.
Does the rental income automatically go into Horizon?
No.
Rental income follows the actual ownership of the property.
If you own the property personally, the rent remains yours. If a company owns the property, the rent belongs to the company. Horizon only receives income or value which is actually and lawfully paid or transferred to the Trustees.
What happens if I sell the overseas property?
Once mortgages, taxes, sale costs and other liabilities have been dealt with, suitable net proceeds can be proposed as a gift to Horizon.
The Trustees can then consider accepting and holding or reinvesting that value in appropriate transferable assets.
What if the property is owned by a foreign company?
The company continues to own the property and operate under its local corporate rules.
Subject to legal and tax review, Horizon may potentially hold transferable shares, securities or shareholder-loan rights in the company rather than the building itself.
Is overseas property automatically outside UK Inheritance Tax?
No.
The UK tax position can depend on factors including the owner's UK residence history, the nature and ownership of the asset and the law applying at the relevant time.
The UK position should therefore be reviewed alongside the local tax position.
Does Horizon avoid probate in the country where my property is located?
Not necessarily.
Where overseas property remains personally owned, local probate, succession or estate-administration procedures may still be required.
Assets already validly held by the Horizon Trustees continue under Trustee administration.
Does Horizon override foreign forced-heirship rules?
No.
Local succession and forced-heirship rules need to be considered in the country where the property or asset is situated.
An English trust does not override mandatory foreign law.
Is Horizon an offshore trust?
Not simply because the underlying asset is overseas.
The residence and tax position of the Trust are determined separately from the location of the overseas asset and are reviewed as part of implementation.
What happens if my affairs become more international?
If your circumstances become more international through relocation, overseas beneficiaries, several jurisdictions or substantial foreign companies and investments, the planning should be reviewed.
In those circumstances, the wider iTrust Global Shield framework may be more appropriate.
Important information
Important information: The benefits described are general illustrations of how the relevant iTrust may operate when appropriately structured and funded. Actual legal, tax and asset-protection outcomes depend on individual circumstances, the assets involved, the terms of the trust and any supplemental instruments, effective implementation and applicable law at the relevant time. Trustee decisions remain subject to the trust deed and their legal duties. Tax treatment and protection from third-party claims cannot be guaranteed and specialist advice may be required.
Overseas property remains subject to the law and tax rules of the country in which it is situated and ordinarily remains outside the standard Horizon Trust until sold or otherwise realised. Local professional advice may be required, and any later transfer of sale proceeds, company interests or other value to the Trustees is separately reviewed and documented.
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