Offshore Trust Tax Tips

There are tax benefits to be gained from having an offshore trust as well as an overseas business. Here is an offshore trust tax tip from tax attorney Carlos Kepke:

Offshore Trust Tax Tip

“A foreign trust is an excellent entity to use to hold shares in start-up businesses. Not only will utilization of a foreign trust afford asset protection benefits but also, and more importantly, it can provide significant United States (“U.S.”) income tax (and estate tax) benefits.

A properly structured foreign trust, once perfected, owning shares in a start-up business will not have to pay U.S. capital gains tax on the sale of such shares.

For example, if the shares of a start-up business valued at say $5,000.00 were held by a foreign trust from the beginning and later sold by that foreign trust (if perfected) say for $500,000.00 – meaning that the business was successful – then the gain of $495,000.00 would not be subject to U.S. capital gains tax. This translates into a savings of about $100,000.00 in U.S. tax.

Perfected foreign trusts present a great opportunity for shareholders of start-up businesses. Shareholders should consider using foreign trusts for this purpose where there is an expectation of appreciation in the value of the shares. For more information, email

This is a valuable offshore trust tax tip.

Until next message may your global business and investing be good.


P.S. Learn more about offshore trust tax tips in the correspondence course International Business Made EZ at

tax deferral  strategies

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

Offshore Trust Tax Tip was updated June 5, 2003