專業叢書
U.S. Trust and Estate Planning 美國信託規劃實務（英文部分）
Chapter 2 U.S. Irrevocable Dynasty Trusts
Why should I establish an irrevocable trust, rather than a revocable one? Does it make a difference where I settle my U.S. trust?
The U.S. Irrevocable Trust is one such vehicle that, when properly structured, has the ability to shelter assets from U.S. transfer taxes almost indefinitely. It does so by having the Grantor transfer assets to the trust irrevocably, thereby completing a gift. After the gift is completed, the Grantor is no longer the legal owner of the assets transferred.
Non-U.S. Wealth Creators should consider seeking counsel when making gifts, especially as it relates to completed gifts because they are irrevocable by definition and can quite easily trigger a gift tax (40%+ of the value of the gift) when the gift consists of U.S.-situs assets. In contrast, gifting non-U.S. situs assets into a U.S. Irrevocable Trust generally does not incur any gift tax. Furthermore, even if these non-U.S. situs assets are liquidated and reinvested in U.S. situs assets, the Grantor’s death should not trigger any U.S. estate tax for assets previously gifted.
Each U.S. state has different regulations regarding the governance of trusts, with certain states being more favorable trust jurisdictions than others. In certain states, rules against perpetuities are in place, defining a definite lifespan for trusts; in other states, trust income may be taxed at high rates. Many Asian Wealth Creators choose to establish their trusts in Nevada or Delaware.
This chapter explores the U.S. irrevocable trust in detail; specifically, it addresses the purpose(s) of establishing a U.S. irrevocable trust, the tax ramifications of a U.S. irrevocable trust and how control of the U.S. irrevocable trust is distributed.
In summary, U.S. irrevocable trusts, when structured as directed trusts, often allow non-U.S. persons to make gifts to U.S. descendants while (1) allowing for the assets to be controlled and protected by trusted persons assigned as fiduciaries and (2) protecting future generations from U.S. transfer taxes. Wealth Creators who seek to permanently transfer assets into the U.S. for the benefit of U.S. beneficiaries should evaluate the merits of such a trust.
Non-U.S. Wealth Creators should consider seeking counsel when making gifts, especially as it relates to completed gifts because they are irrevocable by definition and can quite easily trigger a gift tax (40%+ of the value of the gift) when the gift consists of U.S.-situs assets. In contrast, gifting non-U.S. situs assets into a U.S. Irrevocable Trust generally does not incur any gift tax. Furthermore, even if these non-U.S. situs assets are liquidated and reinvested in U.S. situs assets, the Grantor’s death should not trigger any U.S. estate tax for assets previously gifted.
Each U.S. state has different regulations regarding the governance of trusts, with certain states being more favorable trust jurisdictions than others. In certain states, rules against perpetuities are in place, defining a definite lifespan for trusts; in other states, trust income may be taxed at high rates. Many Asian Wealth Creators choose to establish their trusts in Nevada or Delaware.
This chapter explores the U.S. irrevocable trust in detail; specifically, it addresses the purpose(s) of establishing a U.S. irrevocable trust, the tax ramifications of a U.S. irrevocable trust and how control of the U.S. irrevocable trust is distributed.
In summary, U.S. irrevocable trusts, when structured as directed trusts, often allow non-U.S. persons to make gifts to U.S. descendants while (1) allowing for the assets to be controlled and protected by trusted persons assigned as fiduciaries and (2) protecting future generations from U.S. transfer taxes. Wealth Creators who seek to permanently transfer assets into the U.S. for the benefit of U.S. beneficiaries should evaluate the merits of such a trust.
