Case Study

Helping a Foreign Trust Meet U.S. Compliance

April 16, 2019

Situation

The trustee of a foreign trust requested guidance on the reporting matters impacting U.S.-related beneficiaries of a foreign trust. The trust held ownership of a large foreign entity that was planning for a liquidation event. In addition, income tax guidance was requested concerning the reporting requirements of the trust’s U.S. beneficiaries/persons.

Cherry Bekaert’s Guidance

The PCS Group provided compliance support and filings for the foreign trust and U.S. individual disclosure reporting requirement. The team also reviewed the U.S. income tax reporting requirements to ensure compliance with U.S. laws and to prevent penalties. In addition, future trust planning was provided to the trustee to enable the minimization of U.S. income taxes.