Interested in training for your team? Click here to learn more

U.S. Taxation of Foreign Trusts: Grantor Trust Status, Gift and Estate Tax Treatment, Reporting Requirements, Planning

Recording of a 90-minute CLE/CPE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, July 9, 2024

Recorded event now available

or call 1-800-926-7926

This CLE/CPE course will provide estate planners and tax counsel comprehensive guidance on the U.S. taxation of foreign trusts. The panel will discuss key provisions of the Internal Revenue Code applicable to foreign trusts, the reporting regime for U.S. taxpayers' ownership of foreign trust assets, gift and estate tax treatment, and Form 3520 and other foreign information reporting requirements.

Description

U.S. owners and beneficiaries of foreign trusts are subject to complex tax rules and reporting obligations that are different from those applicable to domestic trusts. Tax and estate planners must recognize the variety of tax issues associated with foreign trusts with U.S. owners or beneficiaries.

Tax and estate planners must determine under U.S. tax rules whether an arrangement is a trust, the residency of the trust as foreign or domestic, and the characterization of the trust. Determination of a trust's residency and characterization will determine the potential income and estate tax impact to the beneficiaries, including potential attribution of ownership entities owned by the trust and complex information reporting obligations.

Tax and estate planning advisers must establish strategies to ensure that U.S. owners and beneficiaries of foreign trusts avoid any unintended tax liability on interests of foreign trusts, including such trusts' interest in foreign partnerships or corporations while avoiding foreign anti-deferral rules.

Listen as our panel discusses key provisions of the Internal Revenue Code applicable to foreign trusts, the reporting regime for U.S. taxpayers' ownership of foreign trust assets, gift and estate tax treatment, Form 3520, and other key items regarding the taxation of foreign trusts.

READ MORE

Outline

  1. Issues of foreign trusts with U.S. beneficiaries in estate planning
  2. Determining tax residency and applicable rules
  3. Understanding tax rules and reporting obligations of foreign trusts for U.S. estates and taxpayers
  4. Foreign grantor trust vs. foreign non-grantor trust
  5. Obtaining a tax-free step-up in basis
  6. Applicability of foreign anti-deferral rules and methods to avoid them

Benefits

The panel will discuss these and other key issues:

  • What are the filing requirements for the U.S. beneficiary of a foreign trust?
  • Avoiding pitfalls of complex tax rules and reporting obligations
  • Understanding residency rules and the use of domestication to benefit the estate
  • What "reportable events" trigger a Form 3520 filing requirement?
  • What is the overlap between Form 3520 and other foreign information reporting requirements?
  • What are the penalties and relief provisions for failing to file necessary forms?
  • Effective techniques to avoid foreign anti-deferral rules
  • Best practices for counsel regarding the taxation of foreign trusts

Faculty

Kayan, Marianne
Marianne Kayan

Principal
Ernst & Young

Ms. Kayan leads a collaborative team of professionals to address the cross border needs of high net-worth business...  |  Read More

Levin, Jeffrey
Jeffrey S. Levin

Senior Partner
Squire Patton Boggs

Mr. Levin’s practice includes federal, state and local taxation; estate planning, trusts and estates...  |  Read More

Packman, Kevin
Kevin E. Packman

Partner
Holland & Knight

Mr. Packman is an ACTEC Fellow and partner in Holland & Knight LLP’s Private Wealth Services Section where he...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

Download