專業叢書
U.S. Trust and Estate Planning 美國信託規劃實務（英文部分）
Chapter 3 U.S. Revocable Dynasty Trusts
What is a Revocable Trust and how is it relevant to me?
By definition, a Revocable Trust is set up so that the Grantor retains the right to revoke the trust and reclaim assets held under the trust. While there are many forms of Revocable Trusts, this chapter focuses primarily on Revocable Trusts with non-U.S. Grantors.
Under U.S. tax law, a Foreign Grantor Trust (“FGT”) is a highly preferential trust structure for U.S. income tax purposes. A FGT settled in the U.S. (generally in Nevada or Delaware) by a non-U.S. person attributes income tax to the non-U.S. grantor of the trust for income tax purposes during the grantor’s lifetime. Thus, if an FGT were to hold only non-U.S. assets (with no U.S.-sourced income), it would generally not be taxable in the U.S. Any distribution from an FGT, if properly structured, would be tax-free to both U.S. and non-U.S. beneficiaries. U.S. beneficiaries of a FGT must file Form 3520, as the distributions are deemed to be gifts from a non-U.S. person for U.S. tax purposes.
Note: For a detailed explanation of the Form 3520, please refer to the section of Chapter 4 that discusses the Form 1040 (including Form 3520).
There are two conditions that can qualify a trust to be a Foreign Grantor Trust:
A FGT allows non-U.S. persons to place assets under U.S. protection without triggering U.S. income tax consequences during the grantor’s lifetime. Furthermore, if assets in the FGT are selected carefully and the grantor only places non-U.S. situs assets in the FGT, the trust would also not be subject to U.S. estate taxes upon the grantor’s death. Lastly, as the U.S. is not a participant in the Common Reporting Standards (CRS), as developed by the Organisation for Economic Co-operation and Development (OECD), information regarding assets held by a FGT established in the U.S. would not be shared with other countries, further protecting the privacy of the Wealth Creator.
Aside from relevant tax considerations, Wealth Creators also often seek to establish a Revocable Trust to designate specific beneficiaries. Though most Wealth Creators establish trusts to include their descendants as beneficiaries, some may choose to exclude certain descendants or others who may seek to claim their assets after their death.
Under U.S. tax law, a Foreign Grantor Trust (“FGT”) is a highly preferential trust structure for U.S. income tax purposes. A FGT settled in the U.S. (generally in Nevada or Delaware) by a non-U.S. person attributes income tax to the non-U.S. grantor of the trust for income tax purposes during the grantor’s lifetime. Thus, if an FGT were to hold only non-U.S. assets (with no U.S.-sourced income), it would generally not be taxable in the U.S. Any distribution from an FGT, if properly structured, would be tax-free to both U.S. and non-U.S. beneficiaries. U.S. beneficiaries of a FGT must file Form 3520, as the distributions are deemed to be gifts from a non-U.S. person for U.S. tax purposes.
Note: For a detailed explanation of the Form 3520, please refer to the section of Chapter 4 that discusses the Form 1040 (including Form 3520).
There are two conditions that can qualify a trust to be a Foreign Grantor Trust:
1. During the non-U.S. Grantor’s lifetime, his right to revoke the trust is unrestricted (a Revocable Trust).
2. During the non-US. Grantor’s lifetime, the only beneficiaries must be the Grantor and his spouse (an Irrevocable Trust).
A FGT allows non-U.S. persons to place assets under U.S. protection without triggering U.S. income tax consequences during the grantor’s lifetime. Furthermore, if assets in the FGT are selected carefully and the grantor only places non-U.S. situs assets in the FGT, the trust would also not be subject to U.S. estate taxes upon the grantor’s death. Lastly, as the U.S. is not a participant in the Common Reporting Standards (CRS), as developed by the Organisation for Economic Co-operation and Development (OECD), information regarding assets held by a FGT established in the U.S. would not be shared with other countries, further protecting the privacy of the Wealth Creator.
Aside from relevant tax considerations, Wealth Creators also often seek to establish a Revocable Trust to designate specific beneficiaries. Though most Wealth Creators establish trusts to include their descendants as beneficiaries, some may choose to exclude certain descendants or others who may seek to claim their assets after their death.
