Yes. It is best to have the trust set up prior to the RV and also the currencies exchanged into the trusts prior to the RV. If you have my partner Randall set the trusts up for you, then upon your request, I can also provide you a template document you can adapt for your trust called "Beneficiary's Exchange of Foreign Currency to Trust". As you know, there is not supposed to be any capital gains tax imposed on ANY Dinar or Dong holders anywhere, but it is to be designated as a "currency exchange" and not an "investment". However, even if the IRS does try to impose a capital gains tax, it would be totally inapplicable to exchanges conducted for currencies owned by these trusts, because they are exempt. That is, providing the exchange has been documented PRIOR TO the RV. That's why I recommend that the "Beneficiary's Exchange of Foreign Currency to Trust" be notarized, to prove that the date of execution was prior to the RV date.
Modified on: Wed, 22 Jul, 2015 at 7:25 PM
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