BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Estate Planning

Date & Time
  • event Date

    Tuesday, October 13, 2020

  • 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.

$297.00
CLE
ALL

This CLE course will provide guidance to estate planners on overcoming the challenges of foreign trust transition planning. The panel will discuss complex tax rules and reporting obligations, the pros and cons of foreign grantor vs. nongrantor trusts, distributions to U.S. and foreign beneficiaries, trust restructuring, and other key considerations for estate planners.

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.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Jack C. Millhouse
International Tax Senior Manager
FGMK

Mr. Millhouse is a Senior Manager in FGMK’s Specialty Tax Practice. He is an attorney with over 10 years of experience in compliance, planning, reporting, and structuring services to corporations and partnerships in the domestic, foreign, taxable and tax-exempt sectors. Mr. Mr. Millhouse's industry experience includes manufacturing, pharmaceutical, private equity, and technology. He evaluates and recommends tax-efficient planning and investing options, facilitates partnership and corporate purchases, and provides guidance on restructuring and sales transactions.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

The use of foreign trusts requires estate planners to implement planning to optimize tax strategies. Estate planners and advisers must consider the present and future impact of U.S. tax rules on the transition of a foreign grantor trust to a nongrantor trust.

Generally, U.S. tax law disallows foreign individuals from being grantors of trusts with U.S. beneficiaries unless an exception applies under Section 672(f). A foreign trust with U.S. beneficiaries will be considered a foreign grantor trust if (1) the grantor has the power to revoke the trust, (2) the grantor or the spouse of the grantor are the sole beneficiaries during the grantor's life, and (3) the trust was created on or before September 1995. Being considered a foreign grantor trust for U.S. tax purposes reduces potential income taxes and diminishes reporting requirements.

On the other hand, accumulated income from a foreign nongrantor trust is considered distributable net income (DNI), which is taxable upon distribution to U.S. beneficiaries as ordinary income or capital gains. Advanced knowledge of these tax rules is critical because foreign grantor trusts default to foreign nongrantor trusts upon the death of the grantor resulting in adverse U.S. tax implications that can only be avoided with effective planning.

Listen as our panel discusses the complex tax rules and reporting obligations of foreign trusts, tax pitfalls to avoid, trust restructuring options, and other key considerations for estate planners.

Outline

  1. Overview of U.S. tax treatment of foreign trusts
  2. Trust transition planning options and challenges
    1. Distributions to U.S. beneficiaries
    2. Distributions to foreign beneficiaries
    3. Trust restructuring
  3. Best practices and common issues for estate planners and advisers

Benefits

The panel will review these and other key issues:

  • What are the pros and cons of foreign grantor vs. nongrantor trusts?
  • What are the U.S. tax implications for foreign trusts with U.S. beneficiaries?
  • What are the key considerations and options for trust restructuring to minimize the tax liability of foreign trusts?
  • What are some planning techniques available to avoid adverse U.S. tax implications for transition of the foreign grantor to nongrantor trusts?