By
Gary Scott
Part of Inspired Investing is to have a system
so that your wealth is not eroded by tax and lawsuits. Carlos Kepke, a tax attorney
I have known and worked with for decades, specializes in using testamentary foreign
trust plans. Here is a tip he has shared with us.
Testamentary Foreign Trust Plans Tip
"We can learn one idea about testamentary foreign
trust plans from a brilliant and successful estate planning attorney who used
to begin all of his speeches regarding estate planning with the statement that
'an estate planning attorney is guilty of malpractice if he does not offer the
option of testamentary foreign trusts to his clients'. Provocative as this may
sound, and notwithstanding the current hullabaloo surrounding foreign trusts,
this remains a true statement about testamentary foreign trust plans.
"Testamentary foreign trust plans, that is,
trusts created in one's will and which become activated only upon the death of
that person can give to the heirs significant U.S. tax advantages not found in
the normal domestic trusts typically placed in persons' wills.
Testamentary Foreign Trust Plans Benefits
"Among the tax advantages of testamentary foreign
trusts plans are: (i) elimination of U.S. capital gains tax on the sale of all
assets placed in the trust (other than U.S. real estate).
(ii) elimination of U.S. income tax on interest income received by the trust from
U.S. bank deposits, certificates of deposit, etc.
(iii) reduction of U.S. income tax rates on passive income (dividends, royalties,
annuities, etc.) received by the trust from U.S. sources.
(iv)elimination of future U.S. estate taxes on all assets held by the trust upon
the deaths of the heirs.
Along with all of this there are significant
asset protection benefits not available to domestic trusts."
Testamentary Foreign Trust Plans Explanation
What Carlos has shared is of great value since
foreign trusts, even if granted by an American, once perfected (when the grantor
passes) are no longer subject to U.S. tax. In addition if the trust does not hold
assets in the U.S., they are highly invulnerable to U.S. lawsuits.
You can get more data on this from Carlos at
carloskepke@webtv.net
Until next message may all your international
business and international investing be good!
Gary
P.S. Learn more about offshore trust tax tips
in the correspondence course International Business Made EZ at GaryScott.com
Real international business is fun and can bring
tax advantages and asset protection. Gary and Merri Scott gain tax advantages
as they enjoy developing their healing center in Ecuador
