Estate & Trust Tax Planning

July 19, 2019 - San Diego, CA

As individuals and business taxpayers increasingly globalize their personal and commercial activity, they expose themselves to greater legal and tax obligations.  Legal advisors must consult their clients with a complete understanding of applicable tax regimes and multijurisdictional issues.  Whether their clients are United States persons with assets or beneficiaries overseas, non-U.S. persons with ties to the U.S. or business entities with a mix of transnational operations and domesticities, it is incumbent upon advisors to remain vigilant in learning how new and evolving tax structures affect their clients.

 Comprehensive international tax and estate planning must consider marital property and inheritance laws, immigration and nationality laws, income, estate and gift taxes, reporting requirements, trusts and foundations, and any potential for conflicts of laws.  This range of factors must be considered within the context of a global progression toward heightened reporting requirements, increased transparency and more stringent tax enforcement and disclosure.  More than ever, ignorance is no defense. 

What You Will Learn

  • Recent tax legislation and legislative proposals affecting international private clients

  • U.S. tax and non-tax reporting requirements applicable to U.S. persons with foreign assets or interests in foreign entities

  • Multijurisdictional succession and tax planning for private clients with international interests or connections

  • Primer on FATCA, foreign trusts, and private investment companies

  • Offshore trust litigation: what gets fiduciaries, settlors, and beneficiaries into trouble and how to avoid it

  • Marital property regimes: types of community property, determining the applicable regime and related U.S. tax consequences

  • Determining when an individual is a U.S. person (citizen or resident) or a nonresident alien and related U.S. tax and immigration law implications

9:00 Introduction

9:15 Dealing with Noncompliant International Private Tax Clients

  • Overview of FATCA vs. CRS and how each will affect international private clients

  • Review of experience in the foreign account voluntary disclosure programs, the continuing availability of voluntary disclosure, and alternatives to voluntary disclosure

  • Recurring themes and traps for the unwary

10:45 Networking Break

11:00 Foreign Trust Planning: The Difficult Questions

  • Practical strategies for dealing with:

    • Disclosure and information reporting under FATCA and CRS

    • Throwback tax

    • Double taxation due to application of more than one country's rules: mismatched timing of income or transfer tax, inconsistent definition of taxpayer, inconsistent sourcing rules, imperfect tax credit rules

    • Use and misuse of foreign corporations

    • Income shifting

  • Dealing with mobility, planning for immigration and emigration of settlors and/or beneficiaries and changes in the residency of trustees

  • Decanting and migration

  • Potpourri of common and not-so-common problematic scenarios facing trustees

(IRS Continuing Education credit for Tax Professionals)
Speakers: Ellen K. Harrison

12:30 Lunch

1:30 Complex Issues Regarding International Estate Administration

  • Marital Property Regimes

  • Forced Heirship

  • Transfers During Lifetime in Trust

  • The role of an executor when dealing with cross-border estates


2:30 Trust Modification and Decanting

  • Decanting and other strategies under foreign law for modifying irrevocable trusts

  • Modifying trusts to increase protection from creditors, including spouses in divorce proceedings

  • Modifying trusts to facilitate administration

  • Modifying trusts to increase tax efficiency

3:45 Networking Break

4:00 Unlocking the Power of Undistributed Net Income (UNI) Assets Trapped in Foreign Non-Grantor Trusts

  • Understanding the confiscatory impact of the “Throwback Rules” as they apply to Foreign Non-Grantor Trust distributions to U.S. Beneficiaries

  • Quantifying the financial impact of traditional distribution options to U.S. Beneficiary recipients

  • Understanding the Default Method for calculating accumulation distributions – who can take advantage of the method and when

  • Exploring the use of life insurance to recreate UNI trust assets for heirs in a more tax advantageous environment
    (IRS Continuing Education credit for Tax Professionals)

5:00 Adjourn

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