As a Non-U.S. Citizen, Must I Set Up a U.S. Trust for a Trust Distribution?
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Question:
I am a non-U.S. citizen from Australia. My friend recently left me a significant inheritance from her trust in the United States. Do I need to set up a trust in the United States to receive it? Or can the money be transferred offshore? Her overall estate is over the threshold for estate taxation.
Response:
You don’t need to set up a trust in the United States, but you may need to set up an account here. It’s really less a question of law than of logistics, which will depend on what the bank or investment firm where the trust assets are housed will permit.
On the other hand, the trustee will have to report the transfer of funds to the Internal Revenue Service. I’d start by asking the trustee to wire the funds directly to your account in Australia. Hopefully, that will go through without a hitch. If it does not, then set up an account in the U.S., preferably in a bank or investment house that handles a lot of international transactions.
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