International Tax Lunch: How To Report An Accumulation Distribution From A Foreign Nongrantor Trust

Description

When a U.S. beneficiary receives a distribution from a foreign trust, the way the distribution is taxed depends on whether the trustee gives the beneficiary the right paperwork. This presentation looks at the all-too-common scenario where a trustee does not provide the necessary paperwork to prevent bad tax results. Learn how to calculate the accumulation distribution under the default rules, how to compute the tax to the beneficiary, and how to prepare the tax forms to report the distribution.

Highlights

• Foreign nongrantor trusts
• Distributions to US beneficiaries
• Accumulation distributions
• Form 3520
• Form 4970

Objectives

• Identify when the default rules for taxation of nongrantor trust distributions apply.
• Identify the paperwork filing requirements for nongrantor trust distributions.
• Understand the calculations required under the default rules.
• Learn the basics of Form 3520 and Form 4970 preparation for nongrantor trust distributions.

Designed For

Lawyers and CPAs.