United States: Trusts

The U.S. Treasury issued final regulations on July 9, 2026, modernizing the requirements for qualified domestic trusts (QDOTs) under Internal Revenue Code Section 2056A. These updated rules introduce new procedures, filing requirements, and security arrangements that estates must follow when a deceased spouse leaves behind a non-U.S. citizen surviving spouse, fundamentally changing how international couples navigate estate tax planning.

IRA account holders typically designate individuals as beneficiaries who will inherit the account upon the account holder’s death – such as “all to spouse” or “in equal shares to children.”

This comprehensive legal update covers critical developments in estate planning, tax law, and trust administration. From new IRS interest rates and fee increases to landmark court decisions on trust validity and marital property, practitioners will find essential guidance on navigating complex estate and trust matters in an evolving regulatory landscape.

Trusts serve as essential instruments for estate and tax planning, offering asset protection and control. Key considerations include understanding tax implications of income distribution versus accumulation, proper trust funding procedures, selecting between individual and corporate trustees, and navigating common implementation pitfalls that can undermine trust effectiveness.

The California Billionaire Tax Act (the “BTA”) contains multiple constitutional defects built into its design. It implicates the Due Process Clause, the Dormant Commerce Clause, and other constitutional limits in ways...

High-profile individuals and professional athletes face growing privacy risks as their real estate holdings, business interests, and financial information become increasingly accessible through public records.

Divorce proceedings involving significant or complex assets are rarely straightforward. Beyond the emotional and legal dimensions, these cases often hinge on a clear and defensible understanding of financial reality.

A new Senate bill proposes imposing annual withholding taxes on trusts exceeding $50 million in assets, with rates ranging from 1% to 3% depending on asset value.

Section 1202 of the Internal Revenue Code offers substantial tax benefits for qualified small business stock (QSBS) holders, allowing exclusion of gains up to $10 million or more per taxpayer. Strategic gifting of QSBS shares to family members, trusts, and other entities can multiply these exclusions, potentially sheltering tens of millions in capital gains from federal taxation while navigating complex timing, gift tax, and trust structure considerations.