Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I am a US citizen who is a longterm (+14 years) resident in the UK and I am having trouble finding tax efficient ways to save for my childrens university education. The problem is that as of last year, I am liable for world wide investment income in both countries, both want to lump children's income with the parent's, but neither of the tax authorities seem to want to recognize the tax advantaged saving/investing schemes of the other. So while I can start a Child Trust Fund in the UK or a 529 Educational savings plan in the US, most of the advantages are undone by the fact that the gains are taxable in the other country. I am not a banker who can afford expensive tax advice or trust schemes and so I am having trouble finding useful and reliable information. Has anyone got any ideas on the following:
How would the inland revenue treat a 529 plan where I was the "account owner" and my son (also UK resident) was the beneficiary? Would it be regarded as a bare trust? Or would it simply count as my investiment income?

Or does anyone have any pertinent advice about how to save for my kids while keeping two sets of taxmen's mits off the results?
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.