Nongrantor trusts (foreign or domestic) have significant tax advantages for foreign investors in U.S. real estate. But these tax advantages come at a cost. Trusts are complicated and expensive to set up and operate. The investor loses control over the trust assets. The capital — and the capital gain — now belongs to the trust, not the investor.
In this one-hour session, Phil will walk you through a typical real estate holding structure for a foreign investor. When do you select a foreign or domestic trust? How do you design the trust for the desired tax results? How can the foreign investor retain control — and financial rewards from the investment — without creating a personal income tax or estate tax risk?
Presenter: Phil Hodgen