On July 5, 2018, the French-American Bar Association (FABA) held a conference in Paris dedicated to international trust law and the practical lessons that legal professionals may draw from recent litigation highlighting the challenges of cross-border estate planning. The event took place at the Maison du Barreau de Paris, in the Gaston Monnerville room, and brought together practitioners dealing with international succession and tax matters.
The purpose of the conference was to identify the main pitfalls to be avoided by practitioners and their international clients when a private estate is connected to common law jurisdictions, and in particular to the use of trusts. This widely publicized case was used as an illustrative example to highlight the legal and tax risks arising from insufficient anticipation of the applicable rules.
Discussions first addressed the notion of personal estate and the foundations of U.S. succession and trust law. The speakers reviewed the principles governing the creation and operation of trusts under common law systems, as well as the structural differences with French civil law mechanisms for wealth transmission. Particular attention was paid to the difficulties that may arise in the enforcement of French wills in the United States, or conversely, where cross-border elements are involved.
The conference then focused on the validity and enforcement of Anglo-Saxon trusts in France. The speakers analyzed how French law approaches these foreign legal instruments from both a private international law perspective and in light of mandatory French civil law rules, particularly in the field of succession law. These issues are of critical importance for practitioners advising clients with assets or beneficiaries in multiple jurisdictions.
Finally, a significant part of the discussion was devoted to the taxation of Anglo-Saxon family trusts in France. The speakers presented the main principles applicable in this area, as well as the tax risks that may arise in the absence of appropriate structuring or adequate planning. This analysis emphasized the need for a coordinated and global approach involving both French and foreign advisers.
The conference featured presentations by Ms. Elie Seyedian, an attorney practicing family and estate law in Los Angeles, co-founder of the French-American Bar Association in New York and Vice President of the Los Angeles Chapter, who spoke on U.S. succession and trust law and the challenges of enforcing French wills in the United States. Mr. Maxime Eppler, attorney admitted to the Paris Bar and partner at DBO Avocats, an expert in private international family law, addressed the validity and enforcement of Anglo-Saxon trusts in France. Mr. François Tripet, attorney admitted to the Paris and Geneva Bars and a recognized specialist in international trust taxation, presented the French tax regime applicable to Anglo-Saxon family trusts.
Welcomed with a breakfast, participants had the opportunity to exchange with the speakers in a setting conducive to dialogue and professional discussion. Accredited as part of mandatory continuing legal education for French attorneys, this conference illustrates FABA’s mission to promote a better understanding of cross-border legal mechanisms and to support practitioners in managing complex international estate planning situations.