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EPISODE DESCRIPTION
In the first of our new monthly podcasts, Aidan Grant is joined by Bari Zahn, Founding Partner of Zahn Law Global LLC, to explore the complex world of real estate ownership for high-net-worth individuals.
Bari, a US attorney with deep expertise in tax and estate planning, introduces the different ways property can be structured – direct ownership, LLCs, and various trust arrangements – highlighting the benefits, potential pitfalls, and tax implications of each. She reveals why many Americans turn to strategies like LLCs and revocable living trusts, which mimic direct ownership while offering probate and tax advantages, and Aidan considers how these solutions translate under UK tax regulations.
The conversation also takes a closer look at estate planning strategies designed to avoid probate and minimise tax exposure for UK citizens investing in US real estate. With insights into tools like transfer-on-death arrangements, jointly held assets, and both living and irrevocable trusts, Bari stresses the importance of tailoring solutions to account for the unique and often complex tax treatments in both the UK and US.
Using a real-life-inspired example of an American investing in UK property, the episode highlights potential tax traps, liability concerns, and the impact of co-ownership between American and non-American spouses. Nuances like ownership transparency, capital gains tax relief, and the interplay between US and UK tax systems are unpacked, providing listeners with practical guidance for navigating this cross-border minefield.
The discussion wraps up with a focus on evolving compliance rules, such as the Corporate Transparency Act, and the nuanced reporting responsibilities for entities like LLCs and trusts, including beneficial ownership filing requirements for trustees. Bari also dispels common misconceptions about probate and LLCs while delivering clear takeaways for both seasoned investors and those new to international real estate.
Join us on the first Wednesday of every month for a new episode of the US-UK Tax Talk podcast, brought to you by Collyer Bristow.
Key Takeaways
Understanding Asset Holding Structures: Real estate can be held in different structures, such as in an individual’s name, through a company, or in a trust. Each structure has unique implications for taxation, estate planning, and legal processes. It’s crucial to understand these to make informed decisions when structuring asset ownership.
Tax Implications Differ Across Borders: The US and UK have differing perspectives on real estate taxation, which can impact how assets are structured. For example, US tax law often seeks to treat property as if held directly in an individual’s name for tax purposes, even when held through certain structures like revocable trusts or LLCs.
Probate Challenges and Asset Protection: Holding real estate in one’s name can lead to probate challenges, especially if the property exists across multiple jurisdictions. Structuring assets through mechanisms like revocable living trusts can help bypass probate. However, these mechanisms can also have complications, particularly for cross-border estates.
Balancing Simplicity and Flexibility: Simplicity in asset ownership (e.g., holding real estate under an individual’s name) may be appealing for personal use or when the asset’s value is modest. However, this simplicity might lead to issues such as limited asset protection, exposure to probate, and inefficiencies in estate planning.
Cross-Border Considerations Are Complex: High-net-worth individuals with properties in both the US and UK need to address the differences in legal and tax systems. Consulting professionals with cross-border expertise is essential to effectively navigate estate planning, tax structures, and asset protection strategies in both jurisdictions.
Chapters:
01:12 – Introduction to Real Estate Structuring
17:27 – The Pros and Cons of Holding Real Estate in an LLC
28:42 – Navigating Corporate Structures and Asset Protection
41:17 – Cross-Border Real Estate Planning for US and UK Nationals
45:04 – The Complexities of International Tax Planning
Disclaimer: This content is provided for general information only and does not constitute legal or other professional advice. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information contained in this material.
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Podcast contributor
Partner
Specialising in International trusts, tax & estate planning, Private wealth, UK trusts, tax & estate planning and US/UK Tax & estate planning
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In the first of our new monthly podcasts, Aidan Grant is joined by Bari Zahn, Founding Partner of Zahn Law Global LLC, to explore the complex world of real estate ownership for high-net-worth individuals.
Published 7 May 2025
INTERNATIONAL TRUSTS, TAX AND ESTATE PLANNING & PRIVATE WEALTH & TAX & ESTATE PLANNING & UK/USA TAX & ESTATE PLANNING & UK/USA TAX & ESTATE PLANNING
PODCASTS
Partner
In the first of our new monthly podcasts, Aidan Grant is joined by Bari Zahn, Founding Partner of Zahn Law Global LLC, to explore the complex world of real estate ownership for high-net-worth individuals.
Bari, a US attorney with deep expertise in tax and estate planning, introduces the different ways property can be structured – direct ownership, LLCs, and various trust arrangements – highlighting the benefits, potential pitfalls, and tax implications of each. She reveals why many Americans turn to strategies like LLCs and revocable living trusts, which mimic direct ownership while offering probate and tax advantages, and Aidan considers how these solutions translate under UK tax regulations.
The conversation also takes a closer look at estate planning strategies designed to avoid probate and minimise tax exposure for UK citizens investing in US real estate. With insights into tools like transfer-on-death arrangements, jointly held assets, and both living and irrevocable trusts, Bari stresses the importance of tailoring solutions to account for the unique and often complex tax treatments in both the UK and US.
Using a real-life-inspired example of an American investing in UK property, the episode highlights potential tax traps, liability concerns, and the impact of co-ownership between American and non-American spouses. Nuances like ownership transparency, capital gains tax relief, and the interplay between US and UK tax systems are unpacked, providing listeners with practical guidance for navigating this cross-border minefield.
The discussion wraps up with a focus on evolving compliance rules, such as the Corporate Transparency Act, and the nuanced reporting responsibilities for entities like LLCs and trusts, including beneficial ownership filing requirements for trustees. Bari also dispels common misconceptions about probate and LLCs while delivering clear takeaways for both seasoned investors and those new to international real estate.
Join us on the first Wednesday of every month for a new episode of the US-UK Tax Talk podcast, brought to you by Collyer Bristow.
Key Takeaways
Understanding Asset Holding Structures: Real estate can be held in different structures, such as in an individual’s name, through a company, or in a trust. Each structure has unique implications for taxation, estate planning, and legal processes. It’s crucial to understand these to make informed decisions when structuring asset ownership.
Tax Implications Differ Across Borders: The US and UK have differing perspectives on real estate taxation, which can impact how assets are structured. For example, US tax law often seeks to treat property as if held directly in an individual’s name for tax purposes, even when held through certain structures like revocable trusts or LLCs.
Probate Challenges and Asset Protection: Holding real estate in one’s name can lead to probate challenges, especially if the property exists across multiple jurisdictions. Structuring assets through mechanisms like revocable living trusts can help bypass probate. However, these mechanisms can also have complications, particularly for cross-border estates.
Balancing Simplicity and Flexibility: Simplicity in asset ownership (e.g., holding real estate under an individual’s name) may be appealing for personal use or when the asset’s value is modest. However, this simplicity might lead to issues such as limited asset protection, exposure to probate, and inefficiencies in estate planning.
Cross-Border Considerations Are Complex: High-net-worth individuals with properties in both the US and UK need to address the differences in legal and tax systems. Consulting professionals with cross-border expertise is essential to effectively navigate estate planning, tax structures, and asset protection strategies in both jurisdictions.
Chapters:
01:12 – Introduction to Real Estate Structuring
17:27 – The Pros and Cons of Holding Real Estate in an LLC
28:42 – Navigating Corporate Structures and Asset Protection
41:17 – Cross-Border Real Estate Planning for US and UK Nationals
45:04 – The Complexities of International Tax Planning
Need some more information? Make an enquiry below.
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Podcast contributor
Partner
Specialising in International trusts, tax & estate planning, Private wealth, UK trusts, tax & estate planning and US/UK Tax & estate planning
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