Constructive Attribution Rules for Foreign Trusts: Direct and Indirect Ownership, Reporting, PPLI, 953(d), Planning
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Estate Planning
- event Date
Thursday, March 28, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
This CLE/CPE webinar will provide trusts and estates counsel and advisers guidance on the application of constructive attribution rules to foreign trusts, critical planning considerations, and pitfalls to avoid. The panel will provide a detailed analysis of constructive attribution rules for foreign trusts, pre-immigration trusts and domestication, beneficiary classes, ensuring compliance, and navigating Forms 3520, 3520-A, and 5471 and FBAR FinCEN Form 114. The panel will also go through case studies, issues stemming from the Corporate Transparency Act (CTA), potential IRS arguments to consider, and other key issues.
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private client services to enable high-net-worth individuals and families to maximize their new or generational wealth. He provides strategic advice to his clients and their closely held businesses in the areas of income tax planning and compliance, estate planning and administration services, as well as family structure consulting. Through many years in practice, he synthesized the work of various related professionals, and their firms integrate several planning strategies into solutions that maximize value. Mr. Lipoff is a frequent lecturer and author of articles published through professional forums on topics including domestic and international - estate planning and fiduciary income taxation including constructive attribution rules for foreign trusts, Forms 3520 & 3520-A, Graegin Loans, business succession, generation-skipping transfers, Chapter 14 and carried interest estate planning for private investment fund principals, preferred freeze partnerships, and private placement life insurance.
Mr. Castro-Rodriguez is an associate in the Tax Practice of Greenberg Traurig's Miami office. He focuses his practice on tax law with an emphasis on international and cross-border tax issues. Mr.Castro-Rodriguez works with clients on income, gift and estate tax planning, expatriation and pre-immigration issues, inbound structures for non-U.S. clients investing or operating in the U.S., outbound structures for U.S. clients investing or operating abroad, and real estate structures for U.S. and non-U.S. investors.
Mr. Bakal develops tax-planning strategies for closely held family businesses, partnerships, and publicly held corporations with significant domestic and international operations. He works closely with high- and ultra-high-net-worth individuals and entrepreneurial companies to develop elegant, tax-sensitive approaches to their complex business transactions, financial situations, estate planning matters, and real estate investments, as well as to pursue tax efficiency throughout their operations. Mr. Bakal advises foreign individuals and families seeking to benefit from advantageous tax structures by migrating their investments and assets to the United States. He designs integrated strategies to encompass the complex components of both international and domestic tax planning. Mr. Bakal continuously monitors the tax planning landscape for new, compliant approaches that can be implemented with the goal of minimizing his clients’ liabilities to the full extent allowable under the law.
U.S. owners and beneficiaries of foreign trusts are subject to complex tax rules and reporting obligations that are different from those applicable to domestic trusts. Tax and estate planners must recognize issues associated with foreign trusts with U.S. owners or beneficiaries and the application of constructive attribution and ownership rules regarding these foreign trusts.
Tax and estate planners must determine under U.S. tax rules whether an arrangement is a trust, the residency of the trust as foreign or domestic, and the characterization of the trust. For foreign trusts, the application of constructive attribution and ownership rules can potentially impact income and estate tax to the beneficiaries, including potential attribution of ownership entities owned by the trust and complex information reporting obligations.
Tax and estate planning advisers must establish strategies to ensure that U.S. owners and beneficiaries of foreign trusts avoid any unintended tax liability on interests of foreign trusts, including such trusts' interest in foreign partnerships or corporations while avoiding foreign anti-deferral rules.
Listen as our panel discusses the challenges of foreign trusts with U.S. beneficiaries, constructive attribution rules for foreign trusts, pre-immigration trusts and domestication, beneficiary classes, ensuring compliance, and navigating Forms 3520, 3520-A, and 5471 and FBAR FinCEN Form 114.
- Understanding tax rules and reporting obligations of foreign trusts for U.S. estates and taxpayers
- Constructive attribution and ownership rules
- Pre-immigration trusts and Section 679 rules
- Issues stemming from the CTA
- Compliance forms: Forms 3520, 2520-A, and 5471; FBAR FinCEN Form 114
- Best practices for trusts and estates counsel
The panel will review these and other key issues:
- Navigating constructive attribution rules for foreign trusts
- Avoiding pitfalls of complex tax rules and reporting obligations
- Key issues stemming from the CTA
- Section 679 rules on pre-immigration trusts
- Best practices for counsel in overcoming challenges of foreign trusts
Learning Objectives
After completing this course, you will be able to
- Understand the application of constructive attribution rules for foreign trusts
- Recognize pitfalls to avoid in the application of complex tax rules and reporting obligations of foreign trusts
- Identify key tax issues stemming from the CTA and impact on estate planning
- Understand the impact of Section 679 rules on pre-immigration trusts
- Ascertain methods for ensuring compliance and completing Forms 3520, 2520-A, and 5471
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of estate, gift and trust taxation including various trusts types, the unified credit, and portability.
Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
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