A trust is a fiduciary arrangement that allows a third party, or trustee, to hold properties on behalf of a beneficiary or beneficiaries.  Trusts allow for the ownership of certain assets to be transferred from the grantor (one who creates the trust and funds it with assets) and controlled by a trustee for the benefit of a beneficiary. Whether a grantor, a trust beneficiary or the trust is subject to any US income tax is determined by

• whether the trust is a US domestic or foreign trust;

 » Read more about: US taxation of Foreign Trusts  »