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Course Details

Course Information
  • smart_display Format

    Live Online with Live Q&A

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Estate Planning

Date & Time
  • event Date

    Saturday, January 23, 2027

  • schedule Time

    1:00 p.m. ET

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.


  • Live Online


    On Demand

Early Bird Pricing!
MSRP
$297.00
$252.45
Save $44.55

Discount expires 8/26/25

This course is $0 with these passes:

CLE
CPE
ALL

This CLE/CPE course will provide estate planners and tax counsel comprehensive guidance on the reporting rules for foreign trusts under U.S. tax law. The panel will discuss key provisions of the Internal Revenue Code applicable to foreign trusts, the reporting regime for U.S. taxpayers' ownership of foreign trust assets, gift and estate tax treatment, and reporting obligations of U.S. beneficiaries of foreign trusts and non-grantor trusts. The panel will provide an in-depth review of Form 3520 and discuss distribution planning for foreign trusts with U.S. beneficiaries.

Description

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 the variety of tax issues associated with foreign trusts with U.S. owners or beneficiaries.

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. Determination of a trust's residency and characterization will determine the potential income and estate tax impact to the beneficiaries, including potential attribution of ownership entities owned by the trust and complex information reporting obligations.

For beneficiaries of foreign trusts, Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, presents significant complexity under current tax law. Even if no transactions related to the trust occurred during the tax year, the IRS requires taxpayers who owned any part of the assets held in a foreign trust, received a distribution from a foreign trust, or who qualify as the responsible party for reporting a foreign "reportable event," to file Form 3520.

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 key provisions of the Internal Revenue Code applicable to foreign trusts, the reporting regime for U.S. taxpayers' ownership of foreign trust assets, gift and estate tax treatment, Form 3520, and other key items regarding foreign trust reporting.

Outline

  1. Issues of foreign trusts with U.S. beneficiaries in estate planning
  2. Determining tax residency and applicable rules
  3. Understanding tax rules and reporting obligations of foreign trusts for U.S. estates and taxpayers
  4. Foreign grantor trust vs. foreign non-grantor trust
  5. Obtaining a tax-free step-up in basis
  6. Applicability of foreign anti-deferral rules and methods to avoid them

Benefits

The panel will discuss these and other key issues:

  • What are the filing requirements for the U.S. beneficiary of a foreign trust?
  • Avoiding pitfalls of complex tax rules and reporting obligations
  • Understanding residency rules and the use of domestication to benefit the estate
  • What "reportable events" trigger a Form 3520 filing requirement?
  • What is the overlap between Form 3520 and other foreign information reporting requirements?
  • What are the penalties and relief provisions for failing to file necessary forms?
  • Effective techniques to avoid foreign anti-deferral rules
  • Best practices for counsel regarding the taxation of foreign trusts

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Understand key U.S. tax provisions as applied to foreign trusts
  • Determine which taxpayers are subject to Form 3520 reporting requirements
  • Discern what transfers and ownership structures must be reported
  • Acquire methods to obtain a tax-free step-up in basis
  • Recognize the IRS audit process for determining Form 3520 or 3520-A delinquency

  • 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 at mid-level within the organization, preparing complex tax forms and schedules for U.S. taxpayers owning or receiving payments from non-US retirement accounts; supervisory authority over other preparers/accountants. Specific knowledge and understanding of basic reporting requirements for U.S. taxpayers with foreign retirement account interests; familiarity with FBAR, FATCA and For 3520 filings

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.