Trust Distributions to Foreign Beneficiaries: Complex Planning and Calculation Challenges
Navigating the Interplay of Foreign Withholdings, Treaty Benefits, DNI Calculations, and Trust Compliance
Recording of a 110-minute CPE webinar with Q&A
This course will provide estate and trust tax advisers and compliance professionals with a thorough and practical guide to the tax compliance issues that fiduciaries face before making or allocating U.S. domestic trust or estate distributions to foreign beneficiaries. The panel will explain how to determine the U.S. status of foreign beneficiaries for U.S. tax purposes, detail how to calculate required withholding tax and net distribution amounts, discuss DNI implications of foreign beneficiaries, and explore the application common tax treaty benefits.
- Simple trusts with foreign beneficiaries
- Withholding requirements for trusts allocating distributions to foreign beneficiaries
- Impact of tax treaty provisions on trusts with non-U.S. beneficiaries
- Additional tax reporting requirements for trusts and foreign beneficiaries
- Critical components of distribution planning
- Impact foreign beneficiaries may have on DNI calculations
The panel will discuss these and other critical questions:
- What must fiduciaries and their tax advisers know to verify the tax status of foreign or “non-U.S.” beneficiaries?
- What are the withholding requirements on distributions, either actual or allocated, to foreign beneficiaries?
- What are the reporting requirements for both the trust and its foreign beneficiaries on trust distributions?
- What impact do tax treaties have on calculation of net distributable amounts?
- What income items must be treated differently for fiduciary accounting income and DNI calculation purposes when a trust has a non-U.S. person as a beneficiary?
Paul F. DePasquale
Baker & McKenzie
Mr. DePasquale advises individuals and multinational entities on international and domestic tax planning, cross-border... | Read More
Mr. DePasquale advises individuals and multinational entities on international and domestic tax planning, cross-border transactions and investments, and wealth management. He also advises financial institutions on regulatory, compliance and strategy matters. He focuses on taxation and wealth management. He advises high net worth individuals and families on a diverse range of matters, including cross-border investments, real estate investments, income tax and transfer tax planning, trust and estate planning, business succession, complex voluntary disclosures, pre-IPO planning, pre-immigration planning, exit planning, controversies, family governance, philanthropy, and family office matters. He also advises on US inbound and outbound international tax issues for multinational corporations and investment funds, and has significant experience advising financial institutions on FATCA, CRS, withholding taxes and information reporting.Close
Dianne C. Mehany
Caplin & Drysdale
Ms. Mehany's practice focuses on international tax planning and controversies, including inbound and outbound tax... | Read More
Ms. Mehany's practice focuses on international tax planning and controversies, including inbound and outbound tax planning, foreign tax credits, tax treaties, tax audits, and FATCA planning and compliance. She also has experience in tax compliance of individuals, companies and financial institutions in the cross-border context, including FATCA reporting, reporting of interests in foreign trusts, and offshore financial accounts and assets.Close
Rodney W. Read
Mr. Read’s practice focuses on wealth management, pre-immigration planning, international estate planning and... | Read More
Mr. Read’s practice focuses on wealth management, pre-immigration planning, international estate planning and international tax. He regularly assists clients with the structuring and administration of trusts, the formation of tax efficient structures for investment in the United States, US tax issues of beneficiaries, negotiation and establishment of Insurance Dedicated Funds, and expatriation from the US with advice regarding the US exit tax. He also guides clients through the US Offshore Voluntary Disclosure Programs, assists with regularizing US tax and reporting obligations, and advises financial institutions, trust companies, multi-national companies and insurance companies regarding FATCA compliance.Close