Private Client Advice

Globalization affects more than just multinational enterprises. Private clients frequently have family members spread across the globe, and local tax laws can affect giving patterns through structures involving trusts and holding companies.

The Firm practice emphasizes efficient use of structures and gift-giving patterns to reduce adverse tax consequences for donors and beneficiaries. 

Sample Representations

  • We planned and coordinated the purchase of real estate in Costa Rica by a U.S. citizen. This entailed planning the structure to effect this purchase, coordinating with foreign counsel to address implementation matters, and eliminating tax exposures under Subpart F that could otherwise endanger favorable capital gains treatment for future sales.

  • We advised a Canadian citizen and resident with respect to obtaining permanent residency in the U.S. as part of a plan to reduce Canadian income tax without an offsetting U.S. tax increase.

  • We advised on transfer tax consequences for the transfer by a dual U.S./French citizen of cash and stock to dual U.S./French grandchildren. We also advised on the income tax consequences of a French citizen and U.S. spouse that considered selling their primary residence located in France. Our analysis entailed a review of the generation-skipping transfer tax and coordination with French counsel.

  • We developed an estate plan for a dual Canadian/U.S. citizen family living in Canada. This required creation of spousal/marital trusts, Q.D.O.T’s, and dynasty trusts for each child. We worked closely with Canadian legal counsel.

  • We developed a pre-immigration tax plan for a French-resident individual owning shares of a French entity. We utilized a “check-the-box” election. Our planning addressed whether the election would be a taxable event, resulting in a step-up in basis for U.S. tax purposes.

  • We advised on the U.S. estate tax aspects for a Taiwanese citizen who wished to benefit U.S. family members. Our advice addressed the foreign grantor trust rules, the U.S. tax consequences at the conclusion of grantor’s lifetime, and compliance with respect to distributions from a foreign non-grantor trust to U.S. beneficiaries. We worked closely with Asian legal counsel.

  • We advised on a foreign stock-based deferred compensation plan for a non-resident executive in conjunction with his transfer to a U.S. subsidiary of the foreign parent. We advised on provisions necessary for the plan to meet §83 and §409A regarding the employee’s taxation in the U.S. and the tax consequence of the transfer of foreign parent stock to the U.S. subsidiary to fund the plan.