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I am the sole beneficiary of an irrevocable Trust registered in Kentucky, USA and Trustees are U.S. citizens.
This Trust was created and funded by Trustees because I did some online freelance work for the Trustees who are businessmen running businesses inside United States.
In order to compensate me they created this Trust with myself as a beneficiary (due to certain reasons they did not pay me directly)
I am a Pakistani Citizen and have never been to U.S. so I am not a U.S. tax resident.
There are more than a million dollars accumulated in that Trust and I am the sole beneficiary.
Trustees want me to get some tax advice before I withdraw any funds from the Trust.
My question is that is there any U.S. tax payable by me if I withdraw cash to my personal bank accounts outside USA?
Someone advised me to register a single-member Delaware LLC and get its bank account in U.S and withdraw from the Trust to that bank account and pay 37% tax on that cash Withdrawal from trust to my LLC's account. How about that?
Kindly let me know what is legal and are there any IRS taxes due on my cash Withdrawals from the Trust?
Thanks!!
This Trust was created and funded by Trustees because I did some online freelance work for the Trustees who are businessmen running businesses inside United States.
In order to compensate me they created this Trust with myself as a beneficiary (due to certain reasons they did not pay me directly)
I am a Pakistani Citizen and have never been to U.S. so I am not a U.S. tax resident.
There are more than a million dollars accumulated in that Trust and I am the sole beneficiary.
Trustees want me to get some tax advice before I withdraw any funds from the Trust.
My question is that is there any U.S. tax payable by me if I withdraw cash to my personal bank accounts outside USA?
Someone advised me to register a single-member Delaware LLC and get its bank account in U.S and withdraw from the Trust to that bank account and pay 37% tax on that cash Withdrawal from trust to my LLC's account. How about that?
Kindly let me know what is legal and are there any IRS taxes due on my cash Withdrawals from the Trust?
Thanks!!