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Services for Trusts & Estates

Transfer of our assets to our spouses, children and other loved ones will almost always have tax implications, especially with US citizens and residents. This becomes particularly complex with a multinational family.

Individuals may consider the use of a trust for many reasons, including asset protection and generational planning. A trust may also be desirable to ensure effective management of assets and to provide benefits for income tax and estate tax purposes. While wealth planning structures may avail individuals of certain tax and non-tax benefits, any structure that is implemented will endure costs for maintenance and compliance. These costs must be considered in weighing the benefits of alternative wealth planning structures.

Our Trusts and Estate Planning practice includes a focus on a broad range of personal services directed to our individual and business clients.

We work with many different types of trusts including:

  • Complex trust structures
  • Foreign and domestic trusts
  • Grantor and non-grantor trusts

Advisory:

  • Personal tax planning and planning for closely held businesses
  • Advice on trust characterization from a US tax perspective such as a simple, complex, or grantor trust and the benefits of a foreign trust vs. a US domestic trust
  • Wealth transfer planning
  • Accounting services for individuals acting as fiduciaries
  • Advice on timing and form of distributions to beneficiaries (e.g., cash, property or loan)
  • Advice on UNI (Undistributed Net Income), DNI (Distributable Net Income), and PTI (Previously Taxed Income)
  • Advice on changes in structures as and when the settlor/beneficiary dies
  • Review structure and the terms of the governing trust agreement for suitability and to determine if changes justify revisions to the trust arrangement
  • Advice on the US tax characteristics of foreign trusts and the annual filing and compliance
    requirements of the trusts and their beneficiaries
  • Assisting the trustee with its obligations under FATCA (see also FATCA)

Compliance:

  • Income tax, trust, estate and gift tax return preparation
  • Foreign grantor trusts, Form 3520-A
  • US beneficiaries of foreign trusts, Form 3520
  • US trusts, Form 1041
  • Foreign trusts, Form 1040NR
  • Trust beneficiary statements

We work closely with advisors from other jurisdictions to ensure our clients’ goals are accomplished from a global perspective. Weaving a path through this complex area of law requires sophisticated planning and sensitivity to the many family and personal issues related to these matters.

Did you Know?

  • Fact Seven

    Thanks to FATCA banks must disclose their American account holders to the IRS or local tax authority.
  • Fact Six

    The IRS is actively looking for non compliant US persons.
  • Fact Five

    It takes an average of 16 hours to do IRS Form 1040.
  • Fact Four

    There are over 500 IRS tax forms.
  • Fact Three

    Since 1916, illegal income has been taxable.
  • Fact Two

    US persons must file tax
    returns no matter where they live and work.
  • Text One

    7 million Americans abroad
    only 500,000 compliant