The Tax Times: International Trust Planning for Global Families

International trust planning has become a central focus for advisors as globally connected families navigate an increasingly complex cross-border environment. Citizenship, residency, business interests, and beneficiaries often span multiple jurisdictions, each with its own tax, legal, and regulatory considerations. As a result, families and advisors must consider how both domestic and foreign trusts are structured not only to achieve planning objectives, but also to function reliably across borders over time.

At Marini & Associates, PA, based in Miami, Florida, we work with global families and their advisors to design trust solutions that can withstand changing laws, shifting residency, and evolving family dynamics across multiple countries.

Why Cross-Border Trust Issues Are Increasing

As global families’ personal, financial, and geographic ties become more interconnected, cross-border considerations now arise in even routine trust discussions. Common scenarios include:

· Families with both U.S. and non-U.S. beneficiaries

· Pre-immigration, expatriation, and mobility-driven planning

· Offshore assets held alongside U.S. investment portfolios

· Multigenerational families with members and business interests in multiple jurisdictions

These fact patterns drive demand for flexible trust solutions that can adapt as family members move, tax rules evolve, and reporting regimes expand.

Foreign Grantor Trusts: A Key International Tool

One structure frequently used in international planning is the Foreign Grantor Trust (FGT). For U.S. tax purposes, a trust’s classification as “foreign” depends on the IRS court test and control test; failure of either can cause the trust to be treated as a non‑U.S. entity for tax purposes. Through careful drafting, a South Dakota or Florida Foreign Grantor Trust can be established as a “foreign” trust for U.S. tax purposes, effectively mirroring offshore tax treatment while remaining a U.S. trust from a legal and administrative standpoint.

This distinction is especially important for:

· Foreign-born individuals residing in the U.S.

· Non‑U.S. persons holding U.S. assets or investing into the U.S.

· Families addressing repatriation, reporting, privacy, or estate tax exposure

Because the trust is considered a U.S. trust for legal purposes, families can also access modern trust features, including long-term (dynasty) planning, strong asset protection statutes, and robust privacy laws available in top domestic jurisdictions. Long-term success, however, requires more than thoughtful drafting; maintaining intended FGT status depends on disciplined fiduciary processes, consistent administration, and a clear understanding of both U.S. tax rules and the governing trust law.

Integrating Domestic and Offshore Asset Protection

International families often feel forced to choose between domestic and offshore asset protection structures. In practice, many of the most resilient strategies deliberately incorporate elements of both. Leading U.S. jurisdictions with progressive trust statutes, such as South Dakota, offer stable trust governance, experienced fiduciary oversight, and industry-leading asset protection regimes that can be paired with offshore features when appropriate.

By integrating domestic and offshore protection concepts into a unified trust instrument, advisors can help families:

· Retain U.S.-based administration, governance, and transparency

· Access offshore-style protections only when circumstances warrant

· Preserve flexibility as legal, tax, and enforcement environments change

For international families navigating heightened transparency, evolving reporting regimes, and cross-border enforcement, an integrated domestic–offshore strategy can help balance flexibility, control, and long-term reliability.

How Our Firm Can Help

Every global family’s profile is unique, and the “right” trust structure depends on goals, existing asset mix, jurisdictions involved, and family governance priorities. At Marini & Associates, PA, based in Miami, Florida, we regularly advise on:

· International trust design and review

· Use of Foreign Grantor Trusts and other cross-border structures

· Coordination with foreign advisors on tax and reporting issues

· Asset protection planning across domestic and offshore jurisdictions

We collaborate closely with clients’ existing legal, tax, and investment teams to implement structures that are not only technically sound today but also designed to remain workable over time.

If your family has ties to multiple countries or if you are considering holding U.S. and non‑U.S. assets in trust, we invite you to schedule a confidential consultation to discuss your options.

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