기타 | revocable Living Trust
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Tim6129관련링크
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There are several potential problems with naming a non-resident as a successor trustee for your living trust;
Disadvantages of Using a Non-Citizen/Non-Resident Trustee: There are special rules that govern trusts if you decide to select a successor trustee who is not a US citizen and is not a US taxpayer. These “foreign” trustees, if initially selected and or activated because of your death or disability, may result in your living trust and any trust created after either of your deaths to be treated as a “foreign trust” under the Internal Revenue Code.
If your living trust or other trusts created after your death are treated as “foreign trusts,” then payments made to those trusts are generally subject to a 30% income tax withholding requirement, unless modified by a tax treaty with the country of the foreign trustee. The withholding requirement applies to any person making a payment. In general, if a person pays or conveys income derived in the United States to a foreign trust or individual foreign beneficiary, or to the foreign trust’s or foreign beneficiary’s foreign or domestic agent, the person conveying the income is liable for the income tax and must withhold.
Your living trust and other trusts will also have additional reporting requirements, severe penalties for failure to report, the loss of the ability to hold subchapter S corporate stock, and possible forced recognition of capital gains, to name a few of the potential consequences. To avoid these results, it will be necessary to appoint one or more “U.S. persons” that have the authority to control all substantial decisions of your trust ; This would mean that if you wish to have a non-citizen who is not a U.S. taxpayer as a trustee, they would be limited to purely administrative tasks such as bookkeeping, collection of rents, and carrying out investment decisions made the U.S. personal trustee.
If you wish to name a non-citizen who is not a U.S. taxpayer as a trustee, then additional language will need to be added to your trust to make sure that “foreign trust” status is not triggered. I guess you need to contact a trust attorney in your local area for more info in detail.
Disadvantages of Using a Non-Citizen/Non-Resident Trustee: There are special rules that govern trusts if you decide to select a successor trustee who is not a US citizen and is not a US taxpayer. These “foreign” trustees, if initially selected and or activated because of your death or disability, may result in your living trust and any trust created after either of your deaths to be treated as a “foreign trust” under the Internal Revenue Code.
If your living trust or other trusts created after your death are treated as “foreign trusts,” then payments made to those trusts are generally subject to a 30% income tax withholding requirement, unless modified by a tax treaty with the country of the foreign trustee. The withholding requirement applies to any person making a payment. In general, if a person pays or conveys income derived in the United States to a foreign trust or individual foreign beneficiary, or to the foreign trust’s or foreign beneficiary’s foreign or domestic agent, the person conveying the income is liable for the income tax and must withhold.
Your living trust and other trusts will also have additional reporting requirements, severe penalties for failure to report, the loss of the ability to hold subchapter S corporate stock, and possible forced recognition of capital gains, to name a few of the potential consequences. To avoid these results, it will be necessary to appoint one or more “U.S. persons” that have the authority to control all substantial decisions of your trust ; This would mean that if you wish to have a non-citizen who is not a U.S. taxpayer as a trustee, they would be limited to purely administrative tasks such as bookkeeping, collection of rents, and carrying out investment decisions made the U.S. personal trustee.
If you wish to name a non-citizen who is not a U.S. taxpayer as a trustee, then additional language will need to be added to your trust to make sure that “foreign trust” status is not triggered. I guess you need to contact a trust attorney in your local area for more info in detail.
작성일2013-09-17 01:28
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