Content Type




Journey to the West – Considerations for Inbound Foreign Professionals (November 2021)

November 1, 2021

Andrew Stone and Eric Huang co-author article for Trusts & Estates Magazine, “Journey to the West – Considerations for Inbound Foreign Professionals.” November 2021. Download…


Court Upholds Higher IRS Penalty on Late Filing of Forms 3520 and 3520-A

September 23, 2021

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…

Changing Times: Tax and Reporting Requirements for US Citizens and Green Card Holders Moving Abroad (September 2021)

September 2, 2021

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…


Reporting Beneficial Owners of Certain US Companies: Observations Relevant to Private Client Structures

March 11, 2021

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…

Reporting Beneficial Owners of Certain US Companies: Details of the New Corporate Transparency Act

March 4, 2021

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.…


Possible Law Changes in US Tax and Reporting Obligations for U.S. and Non-US Persons

January 28, 2021

A new administration at the federal government level may mean tax law changes during 2021. January 28, 2021.  Although unlikely to apply retroactively, advisers to international families should keep an…

Private Trust Companies – Creating the Ideal Trustee

January 1, 2021

Don Kozusko and Miles Padgett co-author Chapter 15 of The Complete Family Office Handbook. 2021 Download…


Estate and Gift tax Situs of Assets – Specific Examples

December 10, 2020

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…

Estate and Gift Tax Situs of Assets – Basic Rules

December 3, 2020

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…


US Individuals Investing in Foreign Companies Should Consider a Section 962 Election to Reduce the GILTI Tax Burden

September 3, 2020

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…


The Complete Family Office: A Guide for Affluent Families and the Advisors Who Serve Them

July 1, 2020

Miles Padgett and Don Kozusko have produced a chapter for the upcoming book, The Complete Family Office: A Guide for Affluent Families and the Advisors Who Serve Them, 2nd Edition…


Completing US Tax Forms: Form 5472 – Foreign-Owned Disregarded Entities

June 18, 2020

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…


Time again to File Bureau of Economic Analysis Survey Form BE-10 to Report Investments Abroad

April 23, 2020

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…

IRS Releases Additional Guidance on 2020 Deadline for Form 3520

April 16, 2020

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…


Preparing US Tax and Information Returns: Forms 3520 and 3520-A

February 20, 2020

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…


Completing US Tax Forms – Form SS-4 – Application For Employer Identification Number

December 19, 2019

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…


Should Offshore Trusts Stay Offshore – The Long-Term Trust Solution

August 1, 2019

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…


Should Offshore Trusts Stay Offshore – The Problems

July 25, 2019

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…


Family Banks: Personal Commitment, Accountability and Multi-Generational Mentoring

April 11, 2019

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…


US Reporting: Requesting IRS Filing Extensions

March 27, 2019

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…


US Reporting Checklist for Foreign Trusts

January 3, 2019

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…

IICLE Trust Administration Handbook – Chapter 2 “Role of the Trustee” (2019, 2014, 2008 and 2005)

January 1, 2019

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…

Contributing Author, Trusts in Prime Jurisdictions, Fifth Edition 2019, Global Law and Business Ltd.

January 1, 2019

Stan Barg is a contributing author of Trusts in Prime Jurisdictions, Fifth Edition 2019, Global Law and Business Ltd.…


A Galley, Head… and Tax Deduction? Tax Savings and Boat Ownership

October 2, 2018

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…


Cushioning the Double-Tax Blow: The Section 962 Election

September 21, 2018

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…

Tax Planning for US Equities Owned in a Non-US Trust Structure

September 20, 2018

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…


Establishing Foreign Trusts in the United States

May 24, 2018

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…


Completing and Filing Form 5472 for Foreign-Owned US LLC

February 1, 2018

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…


Revised Forms W-8 Clarify Some FATCA Issues – But Not All

November 30, 2017

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…


Practical FATCA and CRS Compliance for Family Trust Structures

September 7, 2017

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…


U.S. Citizens Living Abroad Still Face US Tax and Reporting Obligations (May, 2017)

May 4, 2017

Particularly since the US presidential election, some US citizens have moved abroad and others are considering such a move. May 4, 2017. Download…


US LLC Owned by Non-US Person has US Reporting Obligation from Calendar Year 2017

January 26, 2017

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…


Unhappy Voters Looking to Move Abroad (December 2016)

December 6, 2016

Since the United States Presidential Election last month, some U.S. citizens have inquired about moving abroad. December 6, 2016. Download…


Getting the Deal Through: Private Client

November 1, 2016

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…


Trust Protectors: Reportable Under CRS, but not Under FATCA

October 20, 2016

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…


The Private Trust Company Comes Back On Shore – in the United States

September 1, 2016

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…


Panama Papers and US Initiatives to Identify Entity Beneficial Owners

August 4, 2016

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…

Issues Family Offices Face When a Client Marries a Noncitizen (August 2016)

August 2, 2016

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…


FATCA Documentation for US-Based Trusts

April 28, 2016

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…


Common Reporting Standard Considerations for FATCA-Compliant Trusts

February 4, 2016

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…


A Practical Introduction to a Bespoke Solution

January 1, 2016

Miles Padgett authors “Private Trust Companies – A Practical Introduction to a Bespoke Solution, in Investments & Wealth Monitor”, January/February 2016. Download…


Tax on Gifts and Bequests From Covered Expatriates (December 2015)

December 3, 2015

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…


Clear and Present Danger (Sec. 2801 Proposed Regulations) (November 2015)

November 1, 2015

Andrew Stone co-authors Clear and Present Danger (Sec. 2801 Proposed Regulations) for STEP Journal, November, 2015. Download…


Tax and Information Reporting Requirements for US Taxpayers Living Abroad

October 1, 2015

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

July 2, 2015

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…


Bureau of Economic Analysis Reporting – Form BE-10

June 25, 2015

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…

FATCA Documentation for Disregarded Entities

June 18, 2015

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…


FATCA Reporting: Who and What

March 26, 2015

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…


Private Client Tax: Jurisdictional Comparisons

February 1, 2015

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.…


FATCA Reporting: Where and How

January 29, 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…


FATCA: Practical Compliance for Non-US Private Trust Companies andTtheir Trusts

October 23, 2014

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…


FATCA: Trustee-Documented Trusts are not Sponsored Entities

August 7, 2014

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…


Expanded Streamlined Offshore Voluntary Disclosure Procedures

July 1, 2014

Miles Padgett writes the article “Expanded Streamlined Offshore Voluntary Disclosure Procedures,” published on July 1, 2014. Download.…


IRS Changes the Streamlined Filing Compliance Procedures and Offshore Voluntary Disclosure Program (OVDP): Determining Your Most Advantageous Route is Imperative

June 30, 2014

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,…


Court Decisions on FATCA Reporting and Corporate Ownership of Real Estate

February 20, 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…


Responding to New Challenges for Today’s Trusts and Estates Attorneys

January 1, 2014

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…


FATCA Update: Planning for Compliance within Structures for International Families

November 21, 2013

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…

Guide to Family Office Services and Technology

November 1, 2013

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.…


IRS Revises FATCA Model Intergovernmental Agreements

August 15, 2013

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…

Pre-Immigration Planning

August 1, 2013

Rich Fava and Don Kozusko write the Pre-Immigration Planning chapter for the upcoming American Bar Association Guidebook on International Estate Planning.…


Time for Non-US Trustee Companies and Their Trusts to Prepare for FATCA

July 18, 2013

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…


2014 Fiscal Year Estate Tax Proposals

April 22, 2013

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.…


Risk Management for Wealthy Families: Anticipating and Adapting Through Scenario Planning

March 1, 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…


Latest Transfer Tax and FATCA Developments

February 14, 2013

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.…


What to Expect in 2013–US Tax Law Changes

December 20, 2012

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…

Coordinating Risk Management

December 1, 2012

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…


Changing Estate and Gift Tax Laws and International Family Succession Planning

October 11, 2012

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…

The Family Bank

October 1, 2012

Miles Padgett authors, “The Family Bank, Trusts & Estates plus, October 2012.…

United States Chapter of Private Client Tax 2012

October 1, 2012

Stephen Vetter and George Harris author the United States chapter of Private Client Tax: Jurisdictional Comparisons (European Lawyer Reference Series).…


Beyond 2012: The KISS Paradox

September 1, 2012

What is the single most important issue facing family offices today? Autumn 2012. Download…

SEC Provides Relief to Family Offices Under Dodd-Frank

September 1, 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…


Planning for Non-US Trusts Using State Decanting Laws

July 19, 2012

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…


IRS Releases New Form to Report Specified Foreign Financial Assets

March 8, 2012

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…

Decanting: A Statutory Cornucopia

March 1, 2012

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…


Single Family Office Exemption from Registration as Investment Adviser

November 17, 2011

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…


SEC Rules on the Family Office

September 1, 2011

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…


New Guidance and Forms to Report Foreign Accounts and Use of Trust Property

June 2, 2011

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…


IRS Announces 2011 Offshore Voluntary Disclosure Initiative

March 3, 2011

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 Treasury Department Publishes Final Rule for Foreign Bank Account Reports

March 3, 2011

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…


US Estate, Gift and Generation-Skipping Transfer Tax Laws Effective 2010-2012

February 1, 2011

W hen the 2010 New Year dawned it was the first year since 1916 that the United States had no estate tax. February 2011. Download…


Tax Relief Act, Reporting Requirements and Planning for use of Foreign Trust Property

January 6, 2011

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…


SEC Proposed Family Office Comments

November 18, 2010

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…

SEC Issues Proposed Rule on Family Office Exclusion

November 1, 2010

Miles Padgett authors “SEC Issues Proposed Rule on Family Office Exclusion,” for the Trusts & Estates e-Newsletter, November 2010.…


ACTEC Proposals Integrate Subchapter J, PFIC Regime for Foreign Trusts

October 11, 2010

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…

Taxation of US Beneficiaries of Foreign Trusts Owning PFICs

October 7, 2010

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…


Financial Reform Knocks on the Family Office Door

August 1, 2010

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…


Uncompensated Use of Foreign Trust Property: HIRE Act Treats as Trust Distribution

June 24, 2010

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…


Reporting of Offshore Investments – Proposed Regulations and the HIRE Act

May 6, 2010

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…


Congress Allows Estate Tax Repeal for 2010

February 4, 2010

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…


The Foreign Account Tax Compliance Act of 2009 (January 2010)

January 15, 2010

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.…


New Guidance on Expatriation Exit Tax (November 2009)

November 15, 2009

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.…

Developments Regarding Taxation of Use of Trust Property

November 12, 2009

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…


IRS Extends Deadline for Special Voluntary Disclosure Programme

October 1, 2009

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…


Recent IRS Notices and Actions Regarding FBAR and Other Reporting

August 13, 2009

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…


IRS Increases Focus on Offshore Tax Matters

June 4, 2009

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…


Private Placement Life Insurance – Not Your Father’s Oldsmobile

May 1, 2009

Miles Padgett authors, “Private Placement Life Insurance – Not Your Father’s Oldsmobile,” Journal of Wealth Management, Spring 2009.…


Tax Year 2009: The More Things Change, the More They Stay the Same

March 19, 2009

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…


IRS Releases Revised Foreign Bank Account Reporting Form

December 18, 2008

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 Concerning Notice 2008-63 (Private Trust Companies)

November 3, 2008

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…


IRS Proposes Ruling on Private Trust Companies

October 9, 2008

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…


New Tax Law Applicable to Expatriates

July 10, 2008

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…


Determining True Value and Performance of Your Portfolio

June 1, 2008

Miles Padgett authors, “Determining True Value and Performance of Your Portfolio,” for Private Wealth Management Summit, June 2008…


Technical Advice Memorandum on Foreign Trusts Owning Investment Company Stock

May 22, 2008

Several US tax provisions affect US persons who are shareholders of non-US corporations. May 22, 2008. Download…


Foreign Investment in US Real Property: Buyers Beware

December 6, 2007

US real estate brokers are seeing more sales to foreign buyers than ever before. December 6, 2007. Download…


State Law Allows Modification of Irrevocable Trusts

September 20, 2007

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…


Trust Remodeling

August 1, 2007

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…


Tax Deductions for Charitable Gifts

June 21, 2007

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.…


Changes to Credits, Exemptions, Exclusions, Rates and Filing Thresholds

March 8, 2007

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…


Government Focusing on Abusive Offshore Transactions

November 30, 2006

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…


Dispositions of US Real Property Interests by Foreign Persons

September 14, 2006

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…


Lawmakers Unroll Further Tax Reforms

June 8, 2006

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…


State Law Allows Settlors to Tailor Trust Investment Objectives

December 22, 2005

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…


State Law Allows Settlors to Modify Trustee Duty to Inform and Report

October 13, 2005

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…


Act Affects Offshore Deferred Compensation Rabbi Trusts

June 23, 2005

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…


Details of New Tax Laws Applicable to Expatriates

February 17, 2005

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…


The “Integration” in Integrated Wealth Management – How Does it Work in Practice

January 1, 2005

Miles Padgett authors, “The ‘Integration’ in Integrated Wealth Management – How Does it Work in Practice,” Journal of Wealth Management, Winter 2005…


Tax Law Changes under the American Jobs Creation Act 2004

November 18, 2004

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…


Trust Companies for Family Wealth: Build My Own?

September 1, 2004

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…


Transfer Tax Rates and Credits

June 24, 2004

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

June 1, 2004

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…


In Defense of Quiet Trusts

March 1, 2004

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…


Pre-Residency Tax Planning and Offshore Trusts

January 15, 2004

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…

Let There Be Light: Its About Time Trust Documents Were Written in Plain English

January 1, 2004

Let There Be Light: Its about time trust documents were written in plain English. January 2004. Download…


Keep Trusts Offshore?

December 1, 2003

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…


Recent Tax-Related Developments 2003

October 2, 2003

Several noteworthy tax-related developments have recently taken effect in the United States. October 2, 2003. Download…

Rethinking Tax Risk

October 1, 2003

Analyzing a wealth-transfer plan should be a lot more like calculating the risk/return on investments. October 2003. Download…


Open Architecture Trusts: The Wiser Choice

August 1, 2003

There are scenarios that call for a private trust company. But usually open-architecture trusts are best. August 2003. Download…


Taxation of Offshore Trusts and Impact of New Lower Tax Rates

July 2, 2003

President Bush enacted the Jobs and Growth Tax Relief Reconciliation Act 2003 into law on May 28 2003. Download…


Reporting Deadlines Draw Near

April 10, 2003

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…


Private Trust and Protector Companies: How Much Family Control?

October 1, 2002

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…


Mellon Bank, Fiduciary Expenses, and the 2% Floor

January 1, 2001

Miles Padgett authors, “Mellon Bank, Fiduciary Expenses, and the 2% Floor,” for Estate, Gifts and Trust Journal, January 2001.…


Respect for “Form” as “Substance” in U.S. Taxation of International Trusts

December 1, 1999

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…