Foreign trust
Foreign trust: For U.S. tax purposes, a trust that does not meet two tests: a U.S. court can exercise primary supervision over it, and one or more U.S. persons control all of its substantial decisions (26 U.S.C. § 7701(a)(30)(E) and (a)(31)(B)). U.S. owners and beneficiaries of foreign trusts have extra reporting duties under 26 U.S.C. § 6048. In state trust law, the phrase can also mean a trust governed by another state's law.
What foreign trust means
In practice, you will see foreign trust in pleadings, motions, orders and court rules. The definition above explains the general meaning. Even so, the meaning can shift with context. Therefore, always read it alongside the rule or document where it appears.
Where foreign trust comes up
The term is used across many kinds of cases. For example, you may see it in pleadings, motions and court orders. To see it in context, browse the motions and procedures library or the Learn the Law topics.
Read the source: Trust, 26 U.S.C. § 7701.
How to research the term
To research foreign trust, begin with the rule, statute or contract where the word is used. Each one can give it a slightly different meaning. Then compare that text with how courts in your area have applied it. Also check the local rules of your court, since they can add requirements. If your case is in state court, the state rules control. So start with our state procedures guide to find them. In the end, always confirm that the source you rely on is current.
You can read the current federal court rules online for free.
Related legal terms
- First Amendment: the first article of the Bill of Rights: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances." Through the Fourteenth Amendment, it also binds the states.
- Fiscal agent: a bank or other institution that acts as agent for a government in financial matters, such as holding deposits, issuing securities or making payments.
- Foreclosure: the legal process by which a secured creditor sells real property securing a debt after a default, under state law.
- Foreign national: a person who is a citizen or national of a country other than the United States.
Why precise terms matter
Courts read legal terms closely. As a result, knowing the exact meaning of a word helps you follow orders, rules and filings. Each glossary entry on Lawtopolis is short on purpose and links to the pages where the term is used.
Sources
Sources last reviewed: 2026-10-24
Lawtopolis provides legal information and education, not legal advice. Using this site does not create an attorney-client relationship. Laws and court rules vary by jurisdiction and change over time; verify every authority against the official source and consult a licensed attorney in your jurisdiction about your situation.