Matthew Ledvina

Introduction  In an increasingly globalized world, financial instruments like trusts have transcended national boundaries to become truly international entities. While this global reach offers lucrative opportunities for banks and financial institutions, it also adds layers of complexity, particularly when it comes to regulatory compliance. For non-US banks overseeing trusts that have U.S. beneficiaries, the regulatory landscape is akin to a labyrinth, teeming with traps and challenges. Matthew Ledvina, an expert in international financial law, has dedicated his career to helping these banks navigate the intricate terrains of both domestic and international law. This article aims to provide a comprehensive roadmap based on Matthew Ledvina 's expertise to assist these banks in meeting their regulatory obligations and ensuring the success of their international trust ventures. The Complex World of International Trusts  Before we delve into the intricacies of compliance, it's cru...

By Matthew Ledvina , JD, LLM (US Taxation)  What's the Issue?  Navigating the complex U.S. tax landscape for foreign trusts can be a daunting task. The myriad of regulations involving Forms 3520, 3520-A, W-8BEN-E, W-8IMY, and 8938, as well as the Report of Foreign Bank and Financial Accounts (FBAR), makes it a multifaceted issue. The United States Internal Revenue Code (IRC) imposes certain income tax filing and reporting obligations on foreign trusts that have a U.S. connection, be it owners or other forms of nexus.  Why It Matters  For STEP (Society of Trust and Estate Practitioners) members and other professionals dealing with cross-border trust structures, the intricacies of U.S. tax law become critically relevant. Moreover, the Foreign Account Tax Compliance Act (FATCA) and the OECD Common Reporting Standard increase the complexity and the need for compliance.  Objective  This analysis aims to offer a more comprehensive understanding of the myriad U.S....

  By Matthew Ledvina , JD, LLM (US Taxation)  If you have connections to both Switzerland and the United States, managing your estate—basically, what you own—can be like walking through a maze. Both countries have their own rules, and they don't always play well together. Let's break down some of the tricky areas you might encounter, so you can avoid unpleasant surprises for you and your heirs. Different Rules for Different Lands In Switzerland, if you pass away, the laws of the last place you lived will usually govern what happens to your stuff. This includes both your bank accounts and your real estate, whether they are located in Switzerland or elsewhere. But the United States takes a different approach. The place where real estate is located will have its own set of rules, separate from the rules governing personal property like bank accounts. This can create confusion when estates have assets in both countries. I nheritance: A Tightrope Walk Switzerland has strict rules a...

By Matthew Ledvina , JD, LLM (US Taxation) Introduction In a globalized financial landscape, a recurring question perplexing tax practitioners is whether wire transfers of "cash" from non-U.S. persons to U.S. residents are subject to U.S. gift tax. The crux of the matter revolves around whether these wire transfers are classified as tangible or intangible assets under U.S. Tax Code §2501(a). Historical Context Although existing guidelines like Private Letter Rulings (PLRs) and General Counsels Memoranda (GCMs) offer some insights, these are largely outdated and may not suit the complexities of modern finance. Specifically, references like PLR 8210055 and older GCMs (such as GCM 36860 from 1976 and GCM 34845 from 1972) leave much to be desired in terms of current applicability. Additionally, the Curry v. McCanless case from 1939 further complicates the issue by defining intangibles as rights unrelated to physical things.  Bank Deposits as Intangibles According to Regulation §2...