What to Know About Foreign Trusts Reporting Requirements – Los Angeles Income Tax Planning and Asset Protection Plan Attorney Bruce Givner

Bruce Givner's Asset Protection Legal Blogs

Licensed for 41 years

Attorney in Los Angeles, CA

“A
foreign trust can be created for many reasons.  However, it is an
excellent asset protection tool against U.S. creditors,” stated Los Angeles
Income Tax Planning and Asset Protection Plan Attorney Bruce Givner. 
“Whether the foreign trust is used as an asset protection tool or another
reason, the Internal Revenue Service (IRS) requires a taxpayer to comply with
certain foreign trust reporting requirements.”

Generally,
foreign trust reporting rules apply to a U.S. citizen or resident who
creates, owns, or transfers assets to or receives a distribution from a foreign
trust. 

Each
year, a U.S.
citizen or resident who owns any portion of a foreign trust must file Form
3520 – Annual Return to Report Transactions with Foreign Trusts and Receipt of
Certain Foreign Gifts, and Form 3520-A – Annual Information Return of Foreign
Trust with a U.S. Owner.  If you receive a distribution from or, or were
grantor of or a transferor to a foreign trust, Form 1040 – Schedule B, Part
III, Foreign Accounts and Trusts must be completed annually. 

The
following forms may also be required:

?         TDF 90-22.1: Report of Foreign Bank and Financial
Accounts
– required for those with a
financial interest in or signature authority over an account associated with a foreign trust.

?        
Form 709 Gift Tax Return – required if assets are transferred to a
foreign trust. 

Givner
& Kaye focuses on sophisticated income tax planning and compliance, tax
litigation and procedure, estate planning, and asset protection plans for
individuals and businesses in Beverly Hills,
Calabasas, West Los Angeles, Hollywood, and
other areas of Los Angeles
County.  Call Los
Angeles Estate Planning and Asset Protection Plan Attorneys Givner &
Kaye at (310) 207-8008 today.

“A
foreign trust can be created for many reasons.  However, it is an
excellent asset protection tool against U.S. creditors,” stated Los Angeles
Income Tax Planning and Asset Protection Plan Attorney Bruce Givner. 
“Whether the foreign trust is used as an asset protection tool or another
reason, the Internal Revenue Service (IRS) requires a taxpayer to comply with
certain foreign trust reporting requirements.”

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