Foreign Trusts: U.S. Taxpayer Nightmares and How to Avoid Them

Through a series of laws, the U.S. government is ensuring taxpayer's compliance with foreign trust tax and reporting rules. The obvious application of these laws is to a U.S. citizen attempting to transfer cash or income-producing assets to an offshore trust. When dealing with foreign trusts, however, these laws can apply in circumstances where unsuspecting non-U.S. citizen taxpayers can be financially devastated by the consequences. 

In this article with a case example, learn about the practical steps taxpayers can take to address the challenges and common pitfalls around foreign trusts, including important compliance deadlines and reporting obligations.