With the start of a new year, family advisers and trustees of foreign trusts should determine early in 2024 which US filings will be required and the respective deadlines. If…
Enacted on 1 January 2021, the Corporate Transparency Act (CTA) establishes a beneficial ownership reporting regime for US entities, pursuant to which reporting companies must submit a report containing “beneficial…
The Financial Crimes Enforcement Network (FinCEN) has extended the deadline for certain reporting companies to file their initial beneficial ownership information (BOI) reports with FinCEN. The Corporate Transparency Act 2021…
Following the enactment of the Corporate Transparency Act 2021 (CTA), the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) explained that: Collecting this information and providing access to…
Following the enactment of the Corporate Transparency Act 2021 (CTA), the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) explained that the CTA and FinCEN regulations “would help…
As families and their advisers begin to prepare for US entities in their succession planning structures to comply with the Corporate Transparency Act 2021 (CTA), consideration should be given to…
US tax and information reporting obligations have become an increasing concern for international families and their succession planning structures. Missed or late filings can result in steep penalties, even when…
This article is part two in a series on using 2023 to get ready to comply with the new US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) beneficial…
The Corporate Transparency Act (CTA) was enacted 1 January 2021 announcing the creation of a federal beneficial owner register for entities established under the law of a US state. Proposed…
US tax and information reporting obligations have been increasing over the last few years. It is important for family advisers and trustees of foreign trusts to make note early in…
Now that you have either made investments in, or moved to, Portugal, what do you need to know about your ongoing U.S. tax filing and reporting obligations? Severiano Ortiz authors…
A non-US company’s classification for US tax purposes is important for Foreign Account Tax Compliance Act (FATCA) compliance and US withholding tax reasons. Download.…
Did You Forget Your U.S. International Reporting Obligations? written by Severiano Ortiz was published in the Portugal News on November 18, 2022. Download. https://www.theportugalnews.com/ …
Non-US families establishing succession planning structures rarely think about the US generation-skipping transfer (GST) tax. Nevertheless, when a foreign trust becomes a US domestic trust so that distributions can be…
During tax year 2022, advisers to international families should remain vigilant in their awareness of US tax and reporting rules. The sweeping tax law changes threatened in 2021 did not…
This article discusses the December 7, 2021 Proposed Regulations related to the Corporate Transparency Act (CTA) that was enacted January 1, 2021. This article is the fourth in a series…
This article discusses the December 7, 2021 Proposed Regulations related to the Corporate Transparency Act (CTA) that was enacted January 1, 2021. This article is the third in a series…
This article discusses the December 7, 2021 Proposed Regulations related to the Corporate Transparency Act (CTA) that was enacted January 1, 2021. This article is the second in a series…
This article discusses the December 7, 2021 Proposed Regulations related to the Corporate Transparency Act (CTA) that was enacted January 1, 2021. This article is the first in a series…
In October 2021, the Internal Revenue Service (IRS) released an updated version of Form W-8BEN-E. Non-US entities should use this new form when requested to certify their status for US…
Andrew Stone and Eric Huang co-author article for Trusts & Estates Magazine, “Journey to the West – Considerations for Inbound Foreign Professionals.” November 2021. Download…
On 28 July 2021, the Court of Appeals for the Second Circuit handed down its decision in Wilson v United States: “when an individual is both the sole owner and…
For various reasons, some US citizens and Green Card holders are considering living abroad. How tax professionals and trust officers worldwide advise these individuals depends on their objectives. Does the…
This article is the second part to our previous article, Reporting Beneficial Owners of Certain US Companies: Details of the New Corporate Transparency Act. This article considers aspects of the…
This article discusses the new U.S. Corporate Transparency Act that became law on January 1, 2021. For the first time, certain ‘reporting companies’ (either incorporated in the U.S. or non-U.S.…
A new administration at the federal government level may mean tax law changes during 2021. Although unlikely to apply retroactively, advisers to international families should keep an eye on US…
Miles Padgett and Don Kozusko have produced Chapter 15, Creating the Ideal Trustee, for the upcoming book, The Complete Family Office: A Guide for Affluent Families and the Advisors Who Serve…
The first part of this series summarized basic US gift and estate tax situs rules and how the gift and estate taxes are applied to individuals who are not US…
Individuals who are not US citizens and are not domiciled in the United States for transfer tax purposes (non-resident aliens) are subject to US gift tax only on gifts of…
Updates and further considerations to the uses of a Section 962 Election in scenarios where U.S. income tax residents invest in, or retain, ownership over their non-U.S. corporations. International Law…
A limited liability company (LLC) that is created under the laws of a US state and wholly owned by a single non-US person (a foreign-owned LLC) is required to report…
Using Form BE-10, the Bureau of Economic Analysis (BEA) conducts a survey on US direct investment abroad. The survey is conducted every five years and currently covers fiscal years ending…
On the evening of 9 April 2020, the Inland Revenue Service (IRS) issued Notice 2020-23 postponing additional tax deadlines to 15 July 2020. The notice clarifies that the extended deadline…
The Internal Revenue Service (IRS) is ramping up compliance initiatives targeting failures to file US tax and information returns. US tax attorneys and accountants are increasingly seeing IRS notifications and…
US gift, estate and generation-skipping transfer tax exemption amounts have been updated for tax year 2020. Advisers to international families must be able to recognise when a family member has…
Miles Padgett co-authors, Ownership and Governance Structures, Ch. 2 of Private Trust Companies – A Handbook for Advisers, Global Law and Business. 2020.…
Non-US entities, even when not conducting a business in the United States, must sometimes apply for a US tax identification number, known as an employer identification number (EIN). Properly completing…
The first part of this series summarised the US tax rules that subject US beneficiaries of foreign trusts to both a throwback tax regime and an interest charge when they…
US beneficiaries of foreign trusts are subject to a throwback tax regime and an interest charge when they receive distributions of accumulated income from the trust. To avoid these punitive…
Over the past decade, matriarchs and patriarchs of successful families, whether from the United States or elsewhere, have increasingly been concluding that their children are sufficiently provided for and have…
Even the best laid plans to file the various US forms on time can sometimes go astray (for further details please see “US reporting: checklist for foreign trusts”). When they…
Trusts classified as foreign for US tax purposes, whether established under the law of a US state or of an offshore jurisdiction, must review whether they have any US tax…
Andrew Stone co-authors “Role of the Trustee” (Chapter 2) of the Trust Administration Handbook published by the Illinois Institute for Continuing Legal Education. Chapter 2 examines the duties, liability and…
Tax Benefits, Tax Reform, and Fractional Boat Memberships: This article addresses the intersection of the U.S. tax code as applied to houses, boats, and now fractional boat memberships. These days…
The passage of the 2017 Tax Cuts and Jobs Act (TCJA) was heralded as the beginning of a new age in international taxation. Finally, the injustice of the double tax…
Advisers to international families will often hear US tax professionals using the terms ‘basis step up’ and ‘estate tax blocker’. While a family may never have any US citizen or…
Trusts remain a flexible succession planning tool for families wishing to pass wealth to future generations in a responsible manner and can include philanthropic goals. Succession planning trusts are often…
US citizens and US residents are subject to income, gift and estate taxes. Non-US persons are subject to tax on certain US income and property transfers. Advisers to international families…
Beginning in 2018 a limited liability company (LLC) created under the laws of a US state that is wholly owned by a single non-US person (a foreign-owned LLC) will be…
The Internal Revenue Service (IRS) has released an updated Form W-8BEN-E (Rev 2017) and Form W-8IMY (Rev June 2017). Non-US entities should use these new forms when requested to certify…
All over the world, financial institutions are collecting information on and reporting individuals associated with a family’s succession planning trust structure. The family’s interests are best served when the family…
US citizens and US residents are subject to income, gift and estate taxes. Non-US persons are subject to tax on certain US income and property transfers. Advisers to international families…
Limited liability companies (LLCs) established under the law of a US state are classified by default as disregarded entities if they have only one owner. As such, these LLCs have…
Stephen Vetter and Eric Dorsch authored the United States chapter of Getting the Deal Through: Private Client. Reproduced with permission from Law Business Research Ltd. Getting the Deal Through: Private…
It has become fairly common practice for settlors to name a trust protector when settling a trust, particularly when a commercial trust company is named as trustee. The Organisation for…
Confusingly, the term ‘private trust company’ is applied to two types of trust companies: commercial firms that serve the wealthy, ‘private’ clientele also served by ‘private’ banks; and truly private…
In early April 2016 files leaked from a large Panama-based law firm (known as the ‘Panama Papers’) brought to the attention of many the ways in which offshore companies and…
Most family offices that serve U.S. families are well aware that special planning considerations can arise when a U.S. citizen family member marries a noncitizen. August 2, 2016. Download…
Even though a trust may be established under the laws of a US state and have a US trust company serving as trustee (hereinafter a ‘US-based trust’), this does not…
The Foreign Account Tax Compliance Act (FATCA) is in full swing. Non-US financial institutions have completed reporting of US account holders for tax year 2014 and will soon begin compiling…
Miles Padgett authors “Private Trust Companies – A Practical Introduction to a Bespoke Solution, in Investments & Wealth Monitor”, January/February 2016. Download…
On September 8, 2015 the State Department announced that it would increase the fee for individuals to relinquish their US nationality and receive a certificate of loss of nationality from…
The Foreign Account Tax Compliance Act (FATCA) requires non-US financial institutions, including investment entities, to report US account holders to the Internal Revenue Service (IRS). This reporting is causing US…
The-latest-on-Bureau-of-Economic-Analysis-reporting-–-Form-BE-10-Commentary-Lexology.pdf”Bureau of Economic Analysis reporting – Form BE-10″ reported on the new requirement that all US persons owning 10% or more of a foreign affiliate in 2014 report certain information…
The Bureau of Economic Analysis (BEA), an agency of the US Department of Commerce, conducts a survey every five years of US investments abroad. Its stated purpose is to “secure…
The Foreign Account Tax Compliance Act (FATCA) requires entity account holders to document their status for US withholding tax purposes (Chapter 3 status) and their status for FATCA due diligence…
The policy statement in the final amendments to the regulations under the Foreign Account Tax Compliance Act (FATCA) asserts that the law was enacted to prevent abuse of the US…
Stephen Vetter and Eric Dorsch authored the United States chapter of Private Client Tax: Jurisdictional Comparisons, 2nd Edition 2015 (European Lawyer Reference Series). February, 2015.…
One of the stated purposes of the Foreign Account Tax Compliance Act (FATCA) is to address the use of non-US accounts to facilitate tax evasion. In order for the Internal…
As it applies to trusts, the Foreign Account Tax Compliance Act (FATCA) provides the Internal Revenue Service (IRS) with information necessary for the IRS to determine whether US settlors and…
When the United States and the offshore jurisdictions negotiated intergovernmental agreements (IGAs) in order to implement the Foreign Account Tax Compliance Act (FATCA), they added a category of deemed-compliant foreign…
Miles Padgett writes the article “Expanded Streamlined Offshore Voluntary Disclosure Procedures,” published on WealthManagement.com. July 1, 2014. Download.…
What are the new IRS rules related to the international disclosure programs and how best to choose which route is best for your client. Holland & Knight LLP. June 30,…
US persons, both individuals and trusts, and US residents are subject to income, gift and estate taxes. Non-US persons are subject to tax on certain US income and property transfers.…
Tara Rao co-authors Professionalism in Trust and Estate Proceedings, Continuing Legal Education, Florida Bar Real Property, Probate and Trust Law Section, April 24, 2014.…
Transparency and attention to detail are the hallmarks of modern succession planning for international families. The Internal Revenue Service (IRS) chief recently said that implementation of the withholding tax under…
Miles Padgett authors “Responding to New Challenges for Today’s Trusts and Estates Attorneys,” for Best Practices for Structuring Trusts and Estates – Leading Lawyers on Drafting a Flexible Plan, Protecting…
In less than eight months, withholding is scheduled to begin on certain payments of US source income to non-US entities that are not compliant with the Foreign Account Tax Compliance…
The guide to family office services and technology that is published by Family Office Metrics (and which includes KHD) has now been revamped and will be regularly updated online.…
The Internal Revenue Service (IRS) recently posted to its website updated model intergovernmental agreements (dated July 18 2013), which it is using to implement the 2010 Foreign Account Tax Compliance…
Rich Fava and Don Kozusko write the Pre-Immigration Planning chapter for the upcoming American Bar Association Guidebook on International Estate Planning.…
It is time for advisers to international families to assess the classifications of the family office, trust company, trusts and holding companies within the family’s succession planning structures under the…
US persons, both individuals and trusts, and non-US persons with US investments have seen an increase in their US tax reporting obligations over the last few years. In addition, the…
Few, if any, taxes create more complications and fundamental risks for successful families, family firms and individuals than the estate, gift and generation-skipping transfer taxes (transfer taxes). April 22, 2013.…
Tara Rao authors Probate Case Summaries, ActionLine (A publication of the Florida Bar Real Property, Probate & Trust Law Section, Vol. XXXIV, No. 3, Spring 2013.…
It’s not all about the money. Working together as a family while investing or operating a business can enhance financial outcomes, but that kind of success doesn’t, by itself, ensure…
The United States has three transfer taxes – gift, estate and generation-skipping – which were set to revert to lower exemption amounts and higher rates as of January 1 2013.…
As 2012 draws to a close, advisers to international families know that the US tax laws will change and the implementation of expanded reporting obligations will continue. President Obama and…
Don Kozusko, with Miles Padgett and Paul McKibbin, co-author a two-part series, “Coordinating Risk Management – Can wealthy families do more?” for Trusts and Estates magazine. The first article was…
The Tax Relief, Unemployment Insurance Reauthorisation and Job Creation Act of 2010 created advantageous tax and wealth-planning opportunities that are scheduled to expire on December 31 2012. Advisers to international…
Stephen Vetter and George Harris author the United States chapter of Private Client Tax: Jurisdictional Comparisons (European Lawyer Reference Series).…
Tara Rao authors Probate Case Summaries, ActionLine (A publication of the Florida Bar Real Property, Probate & Trust Law Section, Vol. XXXIV, No. 1, Fall 2012.…
Historically, most single-family offices have been exempt from registration as investment advisors under the Investment Advisers Act of 1940 (Advisers Act) due to the private advisor exemption, which exempted an…
Significant planning opportunities now exist for both US and non-US trusts using state decanting laws. Several more states have recently introduced or enacted decanting legislation. The US Treasury Department and…
The Internal Revenue Service (IRS) has released Form 8938 – Statement of Specified Foreign Financial Assets.(1) Certain US taxpayers must now use the form to report information about specified foreign…
In certain circumstances, trustees may want to change the terms of an irrevocable trust. This can be accomplished by decanting, which typically refers to a pour over of funds from…
It is not unusual for international family clients to handle the investment of their wealth personally. The family office is often established, and hires staff, with the express goal of…
Family offices must now square the corners of their ownership and investment process with a new regulation. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) fundamentally changes the…
US persons, both individuals and trusts, and non-US persons with US investments have seen an increase in their US tax reporting obligations over the last few years. Download…
After passing major tax legislation in 2010 and following up with some regulations and guidance notices, the US tax authorities have now released. June 2, 2011. Download…
The Internal Revenue Service (IRS) has announced a 2011 Offshore Voluntary Disclosure Initiative, available until August 31 2011. The previous initiative closed on October 15 2009 with 15,000 voluntary disclosures…
US persons with financial interests in, or signature (or other authority) over, foreign bank accounts, securities accounts and other financial accounts are required to report such interests on Form TD…
The Tax Relief, Unemployment Insurance Reauthorisation and Job Creation Act 2010 was signed into law on December 17 2010. The Tax Relief Act changes the estate and gift tax laws…
Comments to Investment Advisors Act Release No. IA-3098 requesting comments on proposed rule 202(a)(11)(G)-1 (the “Proposal” or “Proposed Rule”) under the Investment Advisers Act of 1940 (the “Advisers Act” or…
In a June 23 memorandum to Treasury’s assistant secretary for tax policy, the American College of Trust and Estate Counsel (ACTEC) submitted proposals for future Treasury guidance coordinating the foreign…
For more than 20 years advisers to US beneficiaries of foreign non-grantor trusts have struggled with the US passive foreign investment corporation (PFIC) rules. October 7, 2010. Download…
On July 21, 2010, many single family offices watched President Obama sign into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act). August 2010. Download…
The Hiring Incentives to Restore Employment (HIRE) Act, which was signed into law on March 18 2010, includes several provisions that change the rules applicable to foreign trusts and their…
Offshore financial accounts and investment companies are frequently in the news these days. The Treasury Department is serious about tax enforcement on cross-border investment flows and has released proposed regulations…
The new year has brought new tax law provisions that US accountants, lawyers and family advisers thought would never take effect. Congress did nothing before the end of 2009 to…
Andrew Stone co-authors the Foreign Account Tax Compliance Act of 2009 for Practical U.S./International Tax Strategies – Thompson Reuters. January 15, 2010. Download.…
Late in 2009, the U.S. Department of Treasury published guidance concerning the exit tax applicable to expatriates and long-term green card holders. November 15, 2009. Download.…
Recent legislative proposals look to change the generally accepted position that a loan of tangible property from a trust, including the rent-free use of a residence or yacht owned by…
On September 21 2009 the Internal Revenue Service (IRS) announced the extension, from September 23 2009 to October 15 2009, of the deadline for its special voluntary disclosure programme. October…
Increasingly, professionals advising international families whose members include US citizens and residents can bring added value to their services if they can highlight US tax reporting requirements and timely compliance…
The Internal Revenue Service (IRS) is making offshore tax matters a top priority, targeting non-US bank and other financial accounts along with offshore structures. June 4, 2009. Download…
The new year has brought talk of stimulus packages and the Internal Revenue Service (IRS) has stepped up its investigation of foreign bank accounts. May 19, 2009. Download…
The Internal Revenue Service (IRS) has posted a new version of the Report of Foreign Bank and Financial Accounts, TD F 90-22.1 (commonly referred to as ‘FBAR’). The IRS had…
Comments on Notice 2008-63, concerning private trust companies (“PTCs”) and various income, estate, and gift tax sections of the Internal Revenue Code. November 3, 2008. Download…
The Internal Revenue Service (IRS) has proposed to issue a revenue ruling on private trust companies (PTCs) in Notice 2008-63, released on July 11 2008. Download…
US citizens and long-term residents who are considering relinquishing their US citizenship or terminating their US residency need to consider the impact of the new mark-to-market deemed sale rule ushered…
Advisers to international families should note that as of January 1 2008, adjustments have been made to the credits, exemptions, exclusions, rates and filing thresholds used to calculate US gift…
Modification of a trust under the laws of the various US states has traditionally been possible only through judicial action, often requiring the consent of all beneficiaries, through a court-approved…
Even irrevocable trusts can be altered to suit current needs. South Dakota’s new decanting law, effective July 1, 2007, provides the best tool for doing so. August 2007. Download…
The United States has generous tax concessions for philanthropy. Deductions for charitable contributions are available to US citizens, resident aliens and non-resident aliens when calculating income, gift and estate taxes.…
The US tax system is ever-changing. Each new year brings adjustments to the credits, exemptions, exclusions, rates and filing thresholds used to calculate the four taxes that affect US and…
Recent US government hearings and reports have focused on abusive international tax planning and the unscrupulous promoters selling those plans. These government investigations should serve as a reminder to all…
The Foreign Investment in Real Property Tax Act 1980 (commonly known as ‘FIRPTA’) introduced tax and reporting requirements designed to ensure the imposition and collection of tax on gain recognized…
US tax practitioners and advisers to international families worldwide are watching and waiting as federal lawmakers in Washington DC slowly unroll tax reforms. June 8, 2006. Download…
Time marches on towards 2010 and the scheduled one-year repeal of the US estate and generation-skipping transfer taxes. In the meantime, US citizens and non-citizens resident in the United States…
The trust law of the various US states has traditionally required trustees to administer trust property solely in the best interests of the beneficiaries, to preserve the property and make…
The laws of several US states enable a trust settlor to restrict disclosure to beneficiaries, adapting the trust form to offer a choice reflecting contemporary concerns about the confidentiality and…
The American Jobs Creation Act 2004 and Internal Revenue Service (IRS) Notice 2005-1 have a significant effect on forms of non-qualified deferred compensation planning which make use of offshore ‘rabbi…
Tax professionals advising former US citizens and long-term residents should take note that the American Jobs Creation Act 2004 has eliminated the tax avoidance motive test previously applied to determine…
President Bush signed the American Jobs Creation Act 2004 on October 22. Although primarily aimed at the taxation of corporations and businesses, several provisions of the act are relevant to…
US citizens and non-citizens who are resident in the United States are subject to US gift and estate tax on their worldwide assets, and to US income tax on their…
Most wealthy U.S. families still choose individuals rather than trust companies to serve as trustee, even for complex trusts holding very substantial assets and even though a family who can…
The Taxpayer Relief Act 1997 and the Economic Growth and Tax Relief Reconciliation Act 2001 mandated changes to US transfer taxes over a period of years. June 24, 2004. Download…
An introduction to U.S. advice for non-residents and non-citizens about international estate planning eleven key topics or what I really need to know I learned in the 3rd grade. June…
A call to rewrite the Uniform Trust Code so that it still prevents fraud and abuse—but protects confidentiality, privacy and discretion. March 2004. Download…
An individual who is not resident in the United States and not a citizen of the United States (a ‘non-resident alien’ (NRA)), but who is intending to immigrate to the…
During the late 1990s, U.S. tax law became increasingly hostile to off-shore trusts that benefit U.S. taxpayers. Tax compliance and planning became much more difficult for non-grantor trusts—and new rules…
April 15 marks the filing due date not only for US income tax returns, but also for the reporting of foreign gifts, distributions from foreign trusts and income earned in…
US citizens and non-citizens who are resident in the United States are subject to US gift and estate tax on their worldwide assets, and to US income tax on their…
When choosing trustees, wealthy U.S. families traditionally selected from among their own family members and those advisors or commercial trustees with whom they had a professional or business relationship over…
It would be difficult to imagine how the federal tax system of the United States could function without the “substance over form” principle. December 1999. Download…
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