Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Foreign beneficiaries introduce an additional level of complexity to the estate tax and fiduciary income tax reporting processes. Delays in corresponding with these beneficiaries and potential language barriers further complicate the tax preparation process especially when left until the last minute. In this course you will learn how a foreign beneficiary of a U.S. estate or trust adds to the overall reporting burdens from an estate tax or fiduciary income tax perspective. A review of the necessary forms which must accompany each return will also be included. Attendees should have a general understanding of both estate tax and fiduciary income tax before taking this course.
Publication Date: August 2021
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Brief Review of Estate and Fiduciary Income Tax
- Obtaining a Tax ID Number for a Foreign Beneficiary
- Estate Tax Reporting Issues
- Noncitizen Beneficiary
- Noncitizen Spouse
- Withholding Obligations for Foreign Beneficiaries
- How Foreign Tax Treaties Impact Reporting Obligations
- Planning Opportunities to Avoid Complexity
Learning Objectives
- Recognize how to advise clients on the additional reporting requirements associated with a foreign beneficiary
- Identify the importance of communicating with foreign beneficiaries early in the estate or trust administration process to avoid unnecessary delays
- Describe the necessary forms and disclosures for estate tax and fiduciary income tax associated with a foreign beneficiary of a U.S. estate or trust
- Recognize how to evaluate the reporting obligations related to a foreign beneficiaries receiving a distribution from a U.S. estate or trust
- Recognize how to analyze planning techniques to minimize administrative complexity related to foreign beneficiaries
- Identify under which circumstances Form 706 is filed
- Identify which form should be completed by US citizen beneficiaries
- Recognize the annual limit for transfers of funds out of the United States to a foreign beneficiary
- Describe the the withholding rate for capital gains generated on the sale of real estate distributed to a foreign beneficiary
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of estate planning.
Advance Preparation
None
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.