Katz Barron Squitero Faust | Practice Areas | Taxation

Preventing improper estate and income taxation of foreign national

The family of a South American citizen came to us after the father's death, when they began receiving notices from the IRS. The IRS was claiming income taxes on the interest earned by the parents on their U.S. bank account. Unfortunately, the family had not filed an estate tax return on the deceased father's U.S. real property. We were able to clarify with the IRS that no income taxes were due on the U.S. bank interest, and we filed the estate tax return.

We then formed a non-resident trust and a limited liability company to help the surviving spouse structure the U.S. real property to avoid estate taxes upon her death, and to avoid probate.

Frank T. Adams