How to Navigate the Choppy Seas for Foreigners With U.S.-Based Heirs: Part IHow to Navigate the Choppy Seas for Foreigners With U.S.-Based Heirs: Part I

Recent changes in the foreign tax provisions of the U.S. Tax Code provide a new opportunity to revisit the possible incorporation of traditional life insurance or foreign private placement life insurance issued by either a foreign carrier or U.S. carrier. In the past, U.S. practitioners relied heavily on entity structure to achieve a desired result. Given some degree of uncertainty with a new, far more complicated proposed structure, we believe practitioners will want to consider integrating other strategies including, perhaps, life insurance.

Past Practice

Prior to a change in the Tax Cuts and Jobs Act (the 2017 Tax Act), practitioners generally relied on a single foreign blocker corporation (FC) to hold U.S. non-real property assets. Any...