In continuation with our recent post on estate planning, here is yet another nugget of advice from us:
If you are a US beneficiary of a Foreign-grantor trust that was discretionary, remember there are indirect transfer rules.
If you think what was meant for you can be paid to someone else (someone you trust) and you access it later, you might want to choose that option to avoid US taxation.
There is a 24 month cool-off period to access the funds that are being held in the hands of another beneficiary, so keep this in mind.
If the 24 month time lapse is not met, it can come right back at you as your income for US tax purposes.
If you have queries concerning such intricacies in taxes, do make an appointment with us soon.
