How to get out of the misunderstanding of American FGT- foreign customer trust

FGT (foreign? Grantor? For a long time, foreign trustor trust has been very popular in Asia, especially in China market. Many institutions directly divide trust business into domestic trust, offshore trust and American trust, and American trust specifically refers to FGT.

The rise of FGT is naturally related to the well-known CRS report. Although under the impact of the COVID-19 epidemic, CRS is no longer such a hot topic, but the change of geopolitical and financial structure in the post-epidemic era has triggered an upsurge of FGT exploration.

In practice, the author found that influenced by the traditional thinking of offshore trust, people have many obvious misunderstandings about FGT, which prevent customers from using FGT correctly. The following four common cognitive errors are obvious:

1)FGT must be the choice of American customers. You can't use FGT without immigrating to the United States.

2)FGT is a special category of trust products, and FGT can be set up purposefully.

3)FGT can be completely exempted from inheritance tax and gift tax.

4)FGT can avoid CRS outside the United States.

Among the above four points, the second point is the most obvious, that is, the special tool trust formed by FGT and the special trust bill introduced by some offshore territories, such as the analogy between FGT and BVI VISTA and the Cayman Star Trust. Our live broadcast will be based on the definition of authoritative organizations, combined with the practical experience of FGT in the international financial market, and explain the definition of FGT thoroughly, thus leading practitioners out of the misunderstanding of FGT.

A deep understanding of FGT is one of the important basic conditions for the effective development of American trust industry.