By establishing a properly structured non-grantor trust—discussed in more detail below—a foreign investor can remove U.S. assets from his or her U.S. estate. Owning U.S. real estate in a trust offers two non-tax advantages for foreign investors.
Can a non-US citizen be a trustee of a trust?
Naming a non-US citizen as a trustee may result in the trust being considered a foreign trust. … A US citizen trustee will not likely incur additional income tax consequences because the trust will be likely be considered a domestic trust and taxed accordingly.
Can a non-US citizen have a US trust?
In fact, it is quite common today to have friends and family who live in a different country. … However, if a trust names a non-U.S. Citizen or a U.S. Citizen who resides in another country as a Successor Trustee, the trust could be considered a “foreign trust” by the IRS, resulting in adverse tax consequences.
Can a foreign citizen be a trustee?
Generally RBI has considered that appointment as a trustee on an Indian trust is permitted under FEMA. In any case, as long as trustee is a non-resident, the trust should not undertake any activities which are prohibited for non-residents.
Can a foreigner be a beneficiary of a trust?
A Trust beneficiary is a person who is entitled to receive money or assets from the Trust. … Naming a non-US citizen as a beneficiary of a Trust could have consequences for inheritance or income-tax. For one, selecting a foreign citizen as a beneficiary can expose the Trust to increased tax liability.
How much can a non-US citizen inherit?
A nonresident not a citizen decedent can generally transfer up to $60,000 of U.S.-situated assets at death without being subject to U.S. estate tax.
What qualifies as a foreign trust?
What is a foreign trust? From a legal standpoint, a foreign trust is a trust over which a U.S. court is not able to exercise primary supervision or a trust over which U.S. persons don’t have the authority to control substantially all decisions of the trust.
How is a foreign trust taxed?
The U.S. income taxation of a foreign trust depends on whether the trust is a grantor or nongrantor trust. Income from a foreign grantor trust is generally taxed to the trust’s grantor, rather than to the trust itself or to the trust’s beneficiaries.
Can a trust have a foreign trustee?
Since “all” substantial decisions must be made by a US person, choosing a non-US family member (i.e., a non-US citizen or foreign national who is a non-US resident) as trustee will mean the trust will fail the control test. As such, the trust will be treated as a “foreign” trust.
Can a foreign person be an executor of a will?
Non-citizens who are U.S. residents can be executors too. However, just because you can does not mean you should. If the executor moves out of the country between the time you make your will and your death, it could be a substantial hassle for your relatives to even locate the executor and inform him of his duties.
Does a trustee have to be an adult?
Any beneficiary who is 14 years of age or older can nominate a trustee, even though a minor under the age of 18 is not legally qualified to serve as trustee.
Can my beneficiary be from another country?
Can my life insurance beneficiary live in another country. We would be direct and give you a straightforward answer: Yes, you can name someone as life insurance beneficiary even if they are not living in the US.