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How Do You Set Up a Foreign Trust? Review and appoint a professional trustee who is established outside of the United States. Review and appoint a protector who is also established outside of the United States. Draft and solidify your foreign Trust document. Open or consolidate your foreign bank and brokerage accounts.
A foreign trust with a U.S. owner must timely file a complete and accurate Form 3520-A and furnish the required annual statements to its U.S. owners and U.S. beneficiaries in order for the U.S. owner to avoid penalties for the foreign trust's failure to file a Form 3520-A.
The main form is the Form 3520-A ? which is used when a US person is an owner of a foreign trust. The other form is Form 3520, which is used when a person has ownership of a foreign trust, engages in certain transactions with the foreign trust, or receives a distribution from the foreign trust.
U.S. persons who are treated as owners of a foreign trust under the grantor trust rules must ensure that the foreign trust timely files a complete and accurate Form 3520-A, Annual Information Return of Foreign Trust with a U.S. Owner, and furnishes the required annual statements to its U.S. owners and U.S. ... Foreign Trust Reporting Requirements and Tax Consequences IRS (.gov) ? international-businesses ? foreig... IRS (.gov) ? international-businesses ? foreig...
An example of a foreign trust would be a New Zealand Superannuation fund, or any other trust or retirement plan/pension held by a foreign entity.