Helping Trusts – What is a Foreign Trust?

What is a Foreign Trust?

A Foreign Trust is defined as any trust which is not a domestic trust. A domestic trust is defined as a trust subject to primary supervision by a US court AND where one or more US fiduciaries have the authority to control substantial decisions.

A Foreign Grantor Trust is a trust settled by an American person or entity.

A Foreign NonGrantor Trust is any trust settled by someone other than an American person or entity.

A trust can change from Domestic to Foreign if the trustees are no longer US persons.

A trust can change from Grantor to NonGrantor if the settlor is no longer a US person.