How does the directive affect trusts and trustees?
It depends. If the trustee is a corporate or not resident in an EU member state they are not subject to the directive. However, if a beneficiary has the immediate and absolute entitlement to the trust income and is resident in an EU member state, the trustee will be deemed to be the paying agent if he is resident in Jersey, Guernsey, the Isle of Man or Gibraltar. The beneficiary will be the recipient of the income which, if savings income arising at trust level, will be within the scope of the directive.
