\ud83d\udc49 The taxpayer is a beneficiary of a US trust whose settlor is his late father. According to the trust deed, the beneficiaries upon the settlor\u2019s death are the taxpayer and his brother, who is a US tax resident. The trust deed provides for the creation of two sub-trusts, one for each child, with the beneficiaries being the first brother and his descendants for the first sub-trust and the other brother and his descendants for the second. The beneficiaries are entitled to an annual distribution from the trust. The trustees are free to distribute income or capital from the trust. From the age of 30, the beneficiaries receive up to 51% of the trust\u2019s value each year.
Federal judges classify the trust as an Irrevocable Fixed Interest Trust. They then question whether the taxpayer has a status identical to that of a life tenant or a beneficiary of a right of habitation (see 4.2.2). In accordance with the opinion of legal scholars, capitalising the trust's income to determine the taxable wealth in the hands of the beneficiary is the best way to respect the taxpayer's ability to pay (see 6.2).
The judgment is in German. It is a Zurich case.<\/p>\n\n\n\n
TF, judgment 9C_677\/2024, of 8 September 2025<\/p>","protected":false},"excerpt":{"rendered":"
\ud83d\udc49 Le contribuable est b\u00e9n\u00e9ficiaire d’un trust US-am\u00e9ricain dont le settlor est son d\u00e9funt p\u00e8re. Selon le trust deed, les b\u00e9n\u00e9ficiaires au d\u00e9c\u00e8s du settlor sont le contribuable et son fr\u00e8re r\u00e9sident fiscal US-am\u00e9ricain. Le trust deed pr\u00e9voit la constitution de deux sous-trusts, un par enfant, dont les b\u00e9n\u00e9ficiaires sont le premier fr\u00e8re et ses […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-300","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n