DOMESTICATING FOREIGN TRUSTS: THE TRUST, TAX, AND ETHICAL CONSIDERATIONS IN BRINGING FOREIGN TRUSTS HOME
By Brian P. Tsu, Esq.*
Trust domestication is the process by which the situs of a foreign trust is moved from a foreign jurisdiction to the United States. This article identifies reasons for domesticating a foreign trust from the perspective of a U.S. beneficiary or settlor.1 In addition, this article examines the trust, tax, and ethical considerations and, where possible, offers potential solutions to problems encountered in a trust domestication. Although relevant to a trust domestication, this article will not examine the local laws of a foreign trust and instead will focus on the U.S. legal aspects of the transaction.