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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Estate Planning

Date & Time
  • event Date

    Tuesday, March 30, 2021

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

$297.00

This course is $0 with these passes:

CLE
ALL

This CLE course will guide estate planners on overcoming the challenges of foreign trusts with U.S. beneficiaries in estate planning. The panel will discuss complex tax rules and reporting obligations, entity and residency classification rules, and qualifying nonresident alien (NRA) grantors as tax owners under Sections 671 and 679, achieving a step-up basis, and techniques to avoid foreign anti-deferral rules.

Faculty

Jack R. Brister
Managing Member
International Wealth Tax Advisors, LLC

Mr. Brister specializes in U.S. tax planning and compliance for non-U.S. families with international wealth and asset protection structures which include foreign trusts, estates and foundations that have a U.S. connection, as well as foreign companies wanting to do business in the U.S. He also specializes in foreign investment in U.S. real property, and other U.S. assets, pre-immigration tax planning, U.S. expatriation matters, U.S. persons in receipt of foreign gifts and inheritances, foreign accounts and assets compliance, offshore voluntary disclosures, FATCA registration, executives working and living abroad and annual reporting. He has been widely published, in addition to speaking at numerous international engagements.

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Christopher J. Byrne
Attorney
Christopher J. Byrne, PLLC

Mr. Byrne has been practicing in the field of international taxation and cross-border estate planning as a Certified Public Accountant and as an Attorney at Law for over 25 years.

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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 issues associated with foreign trusts with U.S. owners or beneficiaries, such as the applicable residency rules, complex tax laws, and foreign anti-deferral rules.

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. In addition to the code and regulations, the IRS and courts have provided guidance. 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 the challenges of foreign trusts with U.S. beneficiaries, residency rules, effective methods to ensure tax savings, achieving tax-free step-up in basis, and understanding the obligations of both trustees and beneficiaries of foreign trusts.

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. Obtaining a tax-free step-up in basis
  5. Applicability of foreign anti-deferral rules and methods to avoid them

Benefits

The panel will review these and other key issues:

  • Determining if an arrangement is classified as a trust
  • Avoiding pitfalls of complex tax rules and reporting obligations
  • Understanding residency rules and the use of domestication to benefit the estate
  • Section 671 and qualifying NRA grantors as tax owners
  • Section 679 rules on pre-immigration trusts
  • Methods to achieve step-up in basis
  • Effective techniques to avoid foreign anti-deferral rules
  • Best practices for counsel in overcoming challenges of foreign trusts with U.S. beneficiaries