Foreign Trust Challenges for U.S. Tax Professionals
Navigating Tax Traps and Opportunities, Fiduciary Accounting Income, Form 3520, and FATCA Compliance
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will explore the U.S. tax compliance and accounting issues arising from foreign trust income. The panel will discuss specific U.S. tax planning issues for foreign trusts that tax advisers and tax counsel should understand.
Outline
- Identification of Foreign Trusts
- Court Test
- Control Test
- Categories of Foreign Trusts
- Grantor
- Non-Grantor
- “Estate Blocker” versus “Estate Taxable” Foreign Trusts
- US Estate Tax Considerations for Foreign Trusts
- US Income Tax Considerations for Foreign Trusts
- Tax Consequences for Foreign Grantor Trusts
- Throwback Tax for Foreign Non-Grantor Trusts
- Transfer of Appreciated Property to Foreign Trusts
- Beneficiary Use of Trust Property
- Qualified Obligations
- Distributions through Intermediaries
- CFC and PFIC Attribution
- Reporting Obligations with Respect to Foreign Trusts and Related Issues
- Creation of Foreign Trust
- Transfer of Assets to Foreign Trust
- Death of US Owner of Foreign Trust
- Annual Reporting for US Owners
- Reporting by US Beneficiaries of Foreign Trusts
- Form 1040, Schedule B
Benefits
The panel will explore these and other relevant issues:
- Proper completion of Forms 3520 and 3520-A in various scenarios
- Preparing Foreign Trust Beneficiary Statements
- Calculating tax on accumulation distributions
- Properly reporting loans, distributions and gifts
- Strategies for addressing non-compliance
Faculty
Cindy D. Brittain
Partner
BakerHostetler
Ms. Brittain serves as a trusted counsel to high-net-worth families in the United States and abroad to implement... | Read More
Ms. Brittain serves as a trusted counsel to high-net-worth families in the United States and abroad to implement tax-efficient strategies to manage family asset transitions. She has extensive experience formulating and implementing plans for business succession planning and developing exit strategies for selling or retaining family business interests. Notably, she often applies her knowledge of tax and trust planning expertise to aide families who may have either a purely domestic or global footprint. She advises on best practices for executing cross-border planning while maintaining regulatory compliance. She works closely with each family to obtain a complete understanding of their values and dynamics and to design plans that align with the family’s unique personal and business goals.
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Christiana M. Lazo
Partner
Proskauer
Ms. Lazo’s practice consists of representing ultra-high net worth individuals, their family offices, and closely... | Read More
Ms. Lazo’s practice consists of representing ultra-high net worth individuals, their family offices, and closely held businesses in developing and implementing sophisticated domestic and international tax and estate plans. She has significant experience counseling global clients on inbound and outbound planning, particularly advising families with members in multiple jurisdictions on wealth transfers and on tax-efficient investment and business ownership structures.
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Lawrence M. Lipoff, CPA, TEP, CEBS
Director
CohnReznick
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private... | Read More
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private client services to enable high net worth individuals and families to maximize their new or generational wealth. He provides strategic advice to his clients and their closely-held businesses in the areas of income tax planning and compliance, estate planning and administration services, consultation regarding formation of family trusts and philanthropic structures. He is a frequent lecturer and author of articles published through professional forums on topics that include preparation of 1040/1041 & 706/709 returns, IRA/pension distribution, domestic and international asset protection, business succession, generation-skipping transfers, S corporation and fiduciary taxation including foreign trusts, alternative minimum tax, Chapter 14, family limited partnerships, international estate planning and administration, grantor charitable lead trusts, captive insurance companies, private placement life insurance and carried interest estate planning for private equity and hedge fund principals.
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Edward Vergara
Partner
Arnold & Porter
Mr. Vergara works with U.S. and foreign individual clients on domestic and international investment and succession... | Read More
Mr. Vergara works with U.S. and foreign individual clients on domestic and international investment and succession planning matters. He works frequently with U.S. beneficiaries of foreign trusts and foundations, U.S. inbound and outbound investments, and fiduciaries managing foreign structures for the benefit of U.S. parties.
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