STEP Journal: Issue 1, 2021

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Journal issue 1, 2021

STEP Journal: Issue 1, 2021

Welcome to the first issue of the STEP Journal for 2021. This issue has a special focus on charity and philanthropy, which has never been more relevant or important to private client advisors. We also shine a spotlight on the UK and Ireland, providing updates on immigration, capital gains tax on divorce, and recent developments from the courts. This issue also features a thought leadership piece on wealth taxes in a post-COVID world, and looks at a new model for practitioners working with ultra-high-net-worth families.



Read the full issue online

New year, new Board

We are delighted to announce that Nancy Golding QC TEP has been elected as worldwide Chair of STEP as of 1 January 2021. Nancy will take over from outgoing Chair Simon Morgan TEP, who has served two one-year terms in the role.

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When the whistle blew on the investment strategies of high-profile UK charities, such as the National Trust and Comic Relief, other UK charities immediately sat up and took note.

Author name
Alice Farrer
Author bio

Alice Farrer is a Portfolio Manager at Sanlam.

Introduction
Alice Farrer highlights how UK charities can ensure they are actively aligning their investments with their core values
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The outbreak of COVID-19 in 2020 hit the global economy hard: the impact of the pandemic will continue to unfold over the coming months and possibly even years.

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Helen Swire
Author bio

Helen Swire is News Editor at STEP.

Introduction
Following the unprecedented events of 2020, Helen Swire looks at what taxation measures governments may be taking this year
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By Pablo A Hernández González-Barreda

Reviewed by Stephen Arthur TEP

This book is an academic analysis of a phrase that all lawyers and tax practitioners think they understand.

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Stephen Arthur
Author bio

Stephen Arthur TEP is a Barrister at Temple Tax Chambers.

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Nearly two years ago, I wrote an article for this publication as I took on the role of Chair, and I remain delighted that our membership chose me to serve.

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Simon Morgan
Author bio

Simon Morgan TEP was worldwide Chair of STEP 2019–20.

Introduction
A letter from the outgoing Chair of STEP, Simon Morgan
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As STEP celebrates its 30th anniversary this year, Nancy Golding QC TEP has been along for almost the entire ride, with a special focus on fiduciary litigation and estate planning.

Author name
Nancy Golding
Author bio

Nancy Golding QC TEP is worldwide Chair of STEP.

Introduction
Nancy Golding QC TEP attended her first STEP luncheon in Calgary as a fresh-faced social-worker-turned-lawyer more than 25 years ago. She knew she wanted to get more involved with STEP and help change the face of the private client industry. Now, as newly elected STEP worldwide Chair, she plans on doing just that.
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When we set out to develop our next five-year strategy, our first step was to revisit STEP’s vision, mission and values to ensure that these continue to reflect who we are, what we stand for and what we want to achieve.

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From community to continuous learning, the Society has refocused its aims for the future
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Roundtable participants:

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Helen Swire
Author bio

Helen Swire is News Editor at STEP.

Introduction
In uncertain times, effective stewardship of family wealth is of key importance. A recent STEP Journal roundtable, sponsored by Highvern, discussed the various elements of how advisors can implement sustainable, responsible practices
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Key points

What is the issue?

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Roman Kubiak and Eleanor Goodridge
Author bio

Roman Kubiak TEP is a Partner and Head of Contested Wills, Trusts and Estates, and Eleanor Goodridge is a Solicitor, at Hugh James.

Introduction
Roman Kubiak and Eleanor Goodridge discuss the need for England and Wales deputies to seek authority before litigating on behalf of a vulnerable person
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Key points

What is the issue?

As the UK remains a popular jurisdiction for entrepreneurs and families to settle, invest and do business in, there are many factors that must be considered, depending on circumstances and plans.

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Julius Bozzino
Author bio

Julius Bozzino is Head of Private Wealth at Vistra UK.

Introduction
Julius Bozzino outlines practical areas advisors should alert investors and entrepreneurs to before they move to the UK
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Key points

What is the issue?

The UK Supreme Court’s significant decision in Sevilleja v Marex Financial Ltd has provided greater clarity regarding the principle against the recovery of reflective loss.

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Victoria Sara-Kennedy
Author bio

Victoria Sara-Kennedy is a Managing Associate at Mishcon de Reya.

Introduction
Victoria Sara-Kennedy assesses a recent UK Supreme Court decision and its implications for the principle against the recovery of reflective loss
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When a couple are in the midst of a breakdown in their marriage or civil partnership, tax may be the last thing on their minds. However, failing to take good tax advice may result in unexpected tax consequences arising from a separation or divorce.

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Trisha Siddique and Helen Barnett
Author bio

Trisha Siddique is a Senior Associate, and Helen Barnett is an Associate, at Wedlake Bell.

Introduction
Trisha Siddique and Helen Barnett explain the implementation of UK capital gains tax on divorce in England and Wales
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Key points

What is the issue?

There are many trusts with a single asset, e.g. a property occupied by beneficiaries, yet there is no guidance for trustees, and no funds to pay for advice on what to do.

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Paul Saunders
Author bio

Paul Saunders TEP is an Independent Trust Consultant.

Introduction
In the second part of this article, Paul Saunders asks where a trustee stands when property is the only trust asset
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What is the issue?

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Julie Butler
Author bio

Julie Butler is the author of Tax Planning for Farm and Land Diversification, Equine Tax Planning, Butler’s Equine Tax Planning (2nd edition) and Stanley: Taxation of Farmers and Landowners, and Editor of Farm Tax Brief.

Introduction
Julie Butler underlines the importance of estate and tax planning in the context of farm disputes in England and Wales
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The unprecedented circumstances of 2020’s COVID-19 outbreak, which engulfed the world by April last year, have caused untold financial stress globally.

Author name
Helen Swire
Author bio

Helen Swire is News Editor at STEP.

Introduction
Helen Swire examines the possibility of increased wealth taxes globally as a means to combat the economic deficit caused by COVID-19
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Key points

What is the issue?

Trustees are being asked to consider the integration of ethical and impact investing into the management of their financial assets, but where do they begin?

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Mike Farley
Author bio

Mike Farley TEP is a Client Director at Altair Partners.

Introduction
As interest grows in ESG and investment solutions, Mike Farley discusses considerations for trustees
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Key points

What is the issue?

A recent report by the OECD details the tax treatment of philanthropic entities and philanthropic giving in 40 OECD Member States and participating countries.

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Gina M Pereira
Author bio

Gina M Pereira TEP is founder and Chief Executive of Dana Philanthropy.

Introduction
The recent OECD report on taxation and philanthropy is an opportunity to develop more efficient and effective policy, writes Gina M Pereira
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Key points

What is the issue?

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Nick Murphy
Author bio

Nick Murphy is Head of Charities and a Partner at Smith & Williamson Investment Management.

Introduction
Nick Murphy assesses the pros and cons of a ‘total return’ approach by trustees for permanently endowed charities in England and Wales
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Binding and non-binding regulations on sustainable finance are multiplying in the EU, Switzerland and elsewhere. Sustainable finance is generally defined as taking into account environmental, social and corporate governance (ESG) considerations in the investment decision process.

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Julie Wynne
Author bio

Julie Wynne TEP is a Partner, and Laura Tscherrig is an Associate, at Froriep.

Introduction
Julie Wynne and Laura Tscherrig look at the implications of the EU Sustainable Finance Action Plan for asset managers
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The advent of planned giving has had a mercurial effect on the relationship of the estate-planning advisor and the process of philanthropy. The best-planned gifts arise from the best advice and, therefore, the best advisors.

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Robert Kleinman
Author bio

Robert Kleinman is a Consultant at the Jewish Community Foundation of Montreal.

Introduction
Robert Kleinman explores the benefits of synchronised estate and gift planning in Canada
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Reimagining grant making

Alana Petraske explores the concept of ‘trust-based philanthropy’ for those interested in giving (or seeking) funding according to this model

A long tradition of openness

Juan Ricardo Romero reviews legislative changes in Uruguay that have created new opportunities for obtaining tax residency

For the second time in less than a year, the Court of Justice of the European Union (the Court) has been questioned over the nature of civil-law notaries as a professional body and the enforceability of their deeds within the area of the EU Succession Regulation (the Regulation).

Author name
Patrick Delas
Author bio

Patrick Delas TEP is a Senior Associate at Russell-Cooke.

Introduction
Patrick Delas explores a recent Court of Justice of the European Union case that examined jurisdiction and applicable law in matters of succession
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Trust deeds frequently confer powers of exclusion on trustees to enable the removal of beneficiaries from the class of beneficiaries or to restrict the benefit that beneficiaries may receive from the trust.

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Edward Hall
Author bio

Edward Hall TEP is a Partner at Wiggin Osborne Fullerlove.

Introduction
Edward Hall explains how to make proper use of the exclusion powers conferred on trustees through trust deeds
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Member Q&A - Carmen Thériault

Carmen Thériault QC TEP leads the private wealth group at Norton Rose Fulbright Canada and is a member of the firm’s national partnership committee and global supervisory board. In December 2020, Carmen was recognised as the 2020 People’s Choice – Trusted Advisor of the Year at the 15th Annual STEP Private Client Awards (PCAs).