November 25, 2020

With Great Power (Control) Comes Great Responsibility – Form 5471 Category 4 Filer

November 25, 2020/ Ruchelman P.L.L.C.

Like Spiderman, it is imperative that controlling shareholders of foreign corporations must recognize that if they have the power to control a foreign corporation, they face a greater responsibility when filing Form 5471, the reporting form for ≥10% shareholders. Neha Rastogi and Galia Antebi take a deep dive into the reporting obligations of a Category 4 Filer. Must read for those U.S. persons that reside outside the U.S. and operate through owner managed businesses.

March 27, 2017

Basis Planning in the Usufruct and Bare Ownership Context

March 27, 2017/ Ruchelman P.L.L.C.

Concepts of usufruct and bare legal ownership are widely used estate planning tools by parents resident in civil law jurisdictions in Europe. However, when the next generation is resident in a common law jurisdiction such as the U.S., the results are not always pretty. Fanny Karaman and Beate Erwin examine the tax consequences for the U.S. children and the steps available to the European parents that may limit adverse tax consequences in the U.S.

September 29, 2016

Usufruct, Bare Ownership, and U.S. Estate Tax: An Unlucky Trio

September 29, 2016/ Ruchelman P.L.L.C.

Splitting ownership into usufruct and bare ownership is a common estate planning technique in several civil law countries. However, this planning technique may have adverse tax consequences when the holder of the bare legal title resides in the U.S. Fanny Karaman and Stanley C. Ruchelman explain the civil law inheritance tax benefits and the pitfalls that are encountered in the U.S.