Flying High Offshore: Being Grounded by the Tax Compliance Issues Relative to an Offshore Trust
Offshore non-U.S. resident trusts are becoming a popular planning vehicle for U.S. citizens, residents, and domiciles for a variety of reasons. Indeed, foreign trusts are a bit of craze for U.S. persons and citizens seeking to diversify their investment portfolios outside the U.S. dollar and outside the physical confines of U.S. borders. Such trusts can facilitate inter-generational wealth transfer planning, marital planning, and provide to the settlor a degree of asset protection planning really unachievable in the domestic U.S. setting given the generous anti-creditor lawsuit statutes in most offshore foreign jurisdictions. Please note that all irrevocable foreign trusts of this type are "grantor" trusts (if they have a U.S. beneficiary) for U.S.
