On October 21st, Partner Carolyn Reers and Associate Mi-Hae Russo published two Practice Notes titled, Estate Planning and Foreign Trusts and Foreign Trust Tax Consequences Checklist.
Estate Planning Considerations for Non-U.S. Citizen Spouses
Estate planning can require extra care and effort where one spouse is not a U.S. citizen. The same can be said for couples who live, work, or own property in the U.S. but neither is a U.S. citizen. These couples should be well-advised in preparing an estate plan to minimize the potential application of U.S.
3 Key Strategies for Funding Educational Expenses
Clients often ask us how to plan for educational expenses for their children or grandchildren.
According to the College Savings Plans Network, at an inflation rate of 6%, it will cost about $276,954.00 to send a child who is currently a toddler to an in-state, public college for four years, inclusive of tuition, fees, room
Executor and Trustee Selection
Who should I nominate as the Executor of my Will? Who should be the Trustee of my Trust? Should the Executor and Trustee be the same person? Should I nominate my children? Can I name multiple people in these roles? What if I don’t have anyone appropriate to name?
These are questions that every estate
U.S. Income Taxation of Foreign Trusts – Beware!
In a previous Wiggin and Dana LLP advisory, we addressed what constitutes a “foreign trust” under the Internal Revenue Code (IRC).[1] We now explore the tax consequences of a foreign trust, as well as the differences between a foreign grantor trust and a foreign non-grantor trust.
There are many benefits of having
Charitable Giving Options: Donor-Advised Funds vs. Private Foundations
Wealthy individuals and families are increasingly incorporating charitable goals into their estate plan. For donors who want to manage their philanthropic activities through longer-term vehicles, two of the most common options are donor-advised funds and private foundations.
Donor-Advised Funds
A donor-advised fund (DAF) is like a charitable savings account. A donor opens and funds an
The New York LLC Transparency Act (NYLTA)
New York has become the first state to enact an analogue to the federal Corporate Transparency Act (the “CTA”), having signed the New York Limited Liability Company Transparency Act (“NYLTA”) into law on December 22, 2023, and later amending it on March 1, 2024. The NYLTA, which will become effective on January 1, 2026, aims
2024 Non-Citizen U.S. Transfer Tax Overview
Overview
Individuals who are neither United States citizens nor U.S. “domiciled” (U.S. resident with an intention to remain indefinitely in the U.S.) are subject to a less favorable estate tax planning environment. In 2024, individuals who are U.S. citizens and domiciliaries can transfer $13,610,000 free of estate, gift and GST tax during their lives or
The Corporate Transparency Act (CTA) 2023 Update
The reporting requirements under the Corporate Transparency Act (CTA) will come into effect on January 1, 2024. The U.S. Treasury estimates that more than 32 million pre-existing entities and approximately 5 million new reporting companies annually over the next decade will have to register under the CTA.
The CTA was enacted on January 1, 2021
How Do I Have A “Foreign Trust” If I Don’t Live Overseas?
Our world today is more interconnected than ever before, and our clients are increasingly living, working, and investing across borders. That interconnectivity can create risks for trusts. If a trust is deemed a “foreign trust” for U.S. federal tax purposes, that can cause unintended and adverse tax consequences for both the grantor (creator) of the