Foreign Investment in Real Property Tax Act (FIRPTA)
The Foreign Investment in Real Property Tax Act (FIRPTA) plays a critical role in regulating the taxation of U.S. real estate transactions involving foreign investors. Understanding FIRPTA, its withholding requirements, and key exceptions is essential for foreign nationals and entities looking to invest in U.S. real property. This guide provides an overview of FIRPTA’s rules, […]
The HEMS Standard: Health, Education, Maintenance, and Support
The HEMS standard, specifically the Health, Education, Maintenance and Support standard, is a “needs-based” discretionary distribution standard that limits the absolute discretion of a trustee to distributions that are consistent with the HEMS standard, providing for the needs of the beneficiary whilst not unnecessarily diminishing the value of the trust fund. The standard is said […]
Funding Trusts with US Situs Assets: Key Takeaways
The transfer by Non Resident Aliens (NRAs) of US situs property to revocable trusts, or trusts over which the grantor retains certain powers, exposes the US property to inclusion in the NRAs US gross estate, and US estate tax. Criteria for US Situs Property Property is considered to be US situs property includable in the […]
A Crash Course in the CRS: An Examination of the OECD’s Common Reporting Standard
The OECD’s Common Reporting Standard (CRS) is a global initiative designed to facilitate the automatic exchange of tax information among countries. Its primary goal is to combat tax evasion and enhance transparency. Major financial centers worldwide, except the US, have committed to the CRS, which mandates financial institutions to conduct due diligence and report financial […]
Unlock the Differences: Closed Ended Funds vs Open Ended Funds – BVI
Open Ended funds and Closed Ended funds are key offerings in the British Virgin Islands investment landscape. The BVI is an ideal jurisdiction for investment funds. The governing legislation is the Securities and Investment Business Act, 2010 (SIBA), the Mutual Funds Regulations, 2010, and related legislation. FUND VEHICLES BVI Funds can be formed as BVI business […]
Trust Laws – South Dakota
Constitution and Legal System The United States is a Federal Republic composed of 50 states, a Federal District, and territories and possessions, managed by a Federal government, with certain powers reserved to the states. South Dakota became the 40th state to join the United States in 1889. The legal system of the United States, including South Dakota, is […]
Essential Asset Protection Trust (APT) Explained – South Dakota
South Dakota adopted asset protection laws in 2005, which are set-out in a separate statutory provision, Qualified Dispositions in Trust, and are amongst the strongest in the US. Asset Protection Requirements In order to fall within the Asset Protection Trust (APT) statute, the trust must have a qualifying South Dakota trustee, the trust must have a South […]
Amendments to the Common Reporting Standard: Insights from John Ryan, President of CISA Trust in STEP Trust Quarterly Review
In the latest STEP Trust Quarterly Review (TQR), John J. Ryan Jr., President of CISA Trust, provides a critical analysis of the “Amendments to the Common Reporting Standard“. This piece is especially relevant for estate planning and asset management professionals, as it addresses the impact of new due-diligence and reporting requirements introduced in 2023 for trustees. […]
Discover the Essentials of Streamlining CRS Reporting
Streamlining CRS reporting involves considering several factors when structuring portfolio investments through companies, partnerships, and trusts resident in CRS Participating Jurisdictions. It’s important to assess not only local tax and estate planning issues but also whether the jurisdiction of the settlor’s residence is a Participating Jurisdiction under CRS. Additionally, check if it has enacted CRS […]
Essential Guide for Financial Institutions: Mastering CRS Reporting Requirements
Financial institutions comply with the Common Reporting Standard (CRS) is a reciprocal, automatic exchange of information mechanism developed by the OECD at the request of the G20 and unveiled in 2014. The first automatic exchanges of information occurred between the Early Adopters in 2017 with respect to year 2016. The majority of jurisdictions have adopted […]