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

  • picture of Jennie Cherry
    Jennie Cherry
  • picture of Stephen K. Vetter
    Stephen K. Vetter

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 receive distributions of accumulated income from a trust established in a no-tax jurisdiction outside the United States (hereinafter referred to as ‘offshore trusts’) (for further details please see “Should offshore trusts stay offshore – the problems”). The first part of this series also examined planning to quarantine the tainted income, the cleansing distribution method and related drawbacks. August 1, 2019. Download