Trust Coordination

Trusts are one of the most effective tools for wealth protection, tax planning, and inheritance management in the U.S.

But Korea does not recognize U.S. trusts in the same way — and cross‑border trust planning requires careful coordination to avoid:

• Double taxation
• Misclassification of trust assets
• Unexpected gift or inheritance tax
• PFIC/CFC issues for beneficiaries
• Complex reporting (3520, 3520‑A, 8938, FBAR)

Trust Coordination ensures your trust strategy works in both countries, aligns with your estate plan, and protects your family without creating unnecessary tax or compliance burdens.

Clients often ask:

• “Does Korea recognize a U.S. revocable or irrevocable trust”
• “Do my children in Korea owe inheritance tax on trust distributions”
• “Do I need to file Form 3520 or 3520‑A”
• “How do I avoid PFIC or CFC issues inside a trust”
• “Should I put Korean assets into a U.S. trust”
• “How do I coordinate my will and trust across both countries”
• “What happens if I move between the U.S. and Korea later”

These questions are extremely common — and the answers depend on the type of trust and the residency of both the grantor and beneficiaries.

We help you design, structure, and maintain trusts that work across both jurisdictions.

✔ Evaluate Trust Types for Cross‑Border Use

• Revocable living trusts
• Irrevocable trusts
• Grantor vs non‑grantor trusts
• Testamentary trusts
• Foreign vs domestic trust classification

We determine which trust type fits your goals and avoids unnecessary reporting.

✔ Coordinate U.S. Trust Rules With Korean Tax Law

• Korea’s limited recognition of foreign trusts
• How Korea treats trust distributions
• Korean inheritance tax on trust assets
• Situs rules for Korean real estate and securities
• Avoiding double taxation on trust transfers

✔ Optimize Trust Funding & Asset Location

• U.S. real estate
• Korean real estate
• U.S. brokerage accounts
• Korean securities and pension accounts
• Business ownership (U.S. or Korea)

We help you decide which assets belong inside the trust — and which do not.

✔ Reporting & Compliance (U.S. & Korea)

We ensure all trust‑related filings are accurate and complete:

• Form 3520 / 3520‑A (foreign trust reporting)
• Form 8938 (FATCA)
• FBAR (FinCEN 114)
• Schedule K‑1 for beneficiaries
• Korean inheritance or gift tax filings (if applicable)

✔ Beneficiary Planning Across Borders

• U.S. beneficiaries receiving Korean assets
• Korean beneficiaries receiving U.S. trust distributions
• Timing strategies to reduce tax
• Avoiding PFIC/CFC issues for heirs
• Coordinating trust distributions with estate planning

Trust planning must be coordinated across both countries — not handled in isolation.

• Treaty‑aligned: We apply the U.S.–Korea estate & gift tax treaty strategically
• Holistic: Trust, estate, gift, and income tax planning all work together
• Risk‑controlled: Avoid PFIC, CFC, and foreign trust reporting traps
• Forward‑looking: Plan for future moves, citizenship changes, and asset growth
• Clear explanations: No jargon — you understand your trust structure