Question:
Can an overseas U.S. citizen set up a revocable grantor living trust for their U.S. financial assets without a U.S. state of residency specified?
Response:
Yes, that should be fine. But the trust does need to say which state’s laws will govern its operation. In addition, it may be necessary to have a United States-based trustee or co-trustee, not as a legal matter, but because any financial institution where you would like to open an account is likely to require it. In fact, Fidelity Investments makes it very difficult for a non-U.S. resident to even serve as trustee or co-trustee. In such cases, it bars the trust having trading authority. As a result, the trust can continue to hold existing investments or sell them and distribute the proceeds, but it cannot making any new investments. Other financial institutions may not be so restrictive,
