Venable of counsel Charles Kolstad
was quoted in a February 10, 2012 article in the Financial Advisor Blog on the impact of Foreign Account Tax Compliance Act on overseas portfolios. The new law which takes effect this year requires U.S. citizens and foreigners lining in the U.S. to report more about their overseas holdings on their tax returns with additional requirements being phased in over the coming years.
Kolstad said he recently advised two sisters who inherited a fortune from their father in Swiss bank accounts to move the money to the U.S. Commenting on the impact of the new law, Kolstad said, “Five years ago, we would have said to leave it where it was,” adding, “An alternative to a Swiss account… may be a trust set up in Delaware, Alaska and South Dakota, where trust laws favor trustees.”