Assets Held by Irrevocable Trust
Some Alternative Methods for Foreign Investor to Take Title to U.S. Residential Real Property
BENEFITS AND BURDENS OF SOME
ALTERNATIVE METHODS FOR A FOREIGN INVESTOR TO TAKE TITLE TO
U.S. RESIDENTIAL REAL PROPERTY
CA Residential Real Property held by IRREVOCABLE TRUST – governed under California law, with Non-U.S. Citizen Residing Abroad, as Grantor
- Disposition of Assets. Same as if the Property was held by Revocable Trust (see Item No. 4).
- U.S. Income Tax. The nonresident alien grantor will not be subject to income tax or capital gains realized from the U.S. real estate. Everything gets taxed to the trust or its beneficiaries.
- U.S. Estate Tax. The nonresident alien grantor is exempt from U.S. estate tax; as he has no interest in the trust corpus.
- Loss of Control. Nonresident grantor is cut off from ownership and control over trust corpus