Foreign-situs Trust Law and Legal Definition
Foreign-situs trust refers to a trust created under foreign law. Such trusts are treated as a non-resident individual for federal tax purposes and therefore has no significant income-tax benefits. They are usually subject to greater reporting requirements than a domestic trust. Foreign-situs trust is also used as a means of asset protection as the creditors cannot easily reach the foreign trust's assets.
Foreign-situs trusts are also called foreign trusts or offshore trusts.
