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Old 22.04.2020, 15:08
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Re: The Brexit referendum thread: potential consequences for GB, EU and the Brits in

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The thing about trust funds kids is that their money don't come out of nowhere. There's an entire infrastructure to make those profits possible. If you're looking at taxation from this pov, then they are indeed taxed too little. It's a universal problem not necessarily country specific. While a low taxes system might encourage entrepreneurship as a rule, and I guess we all know it, it's always a difficult job to determine how much we should tax wealth in general.
Thats why poor quality companies pay very high dividends as they know income trusts will be buyers & they are only interested in income & not capital preservation.

Taxation of trusts is actually worse than of an individual, the reason for a trust is to prevent the capital being wasted & control how the money is invested.. I can think of more than 1 person that does not believe their wife or children can look after a large capital sum if he were to die, so it gets put in trust for non existent great grandchildren & gives the income only to his wife & her death their children & then grandchildren. Expenses & 3 lots of 30% IHT will ensure there is almost nothing left for the great grand children.
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