1. Introduction
A. History And Background
The United States (US) is a union of 50 sovereign states plus
the District of Columbia and 15 dependencies. Property laws
affecting trusts and estates are a matter of state law, consisting
of statutes and court precedents, and vary from state to state. The
Uniform Probate Code (UPC), a model set of laws governing the
devolution of property at death, has been adopted in whole or in
part by at least 18 states. The Uniform Trust Code (UTC), a
codification of the common law of trusts, has been adopted in whole
or in part by at least 24 states. The Hague Convention on the
Law Applicable to Trusts and on their Recognition, 1 July 1985
has not been approved by the US Congress.
The currency is the US dollar (USD).
B. Legal System
The US operates under a federal legal system whereby the federal
government has specific, enumerated powers under the US
Constitution. The states retain those powers not enumerated in the
US Constitution. The US Constitution creates a tripartite system of
government made up of the legislative, executive and judicial
branches. The legislative branch, or Congress, consisting of the
House of Representatives and the Senate, enacts federal laws. The
executive branch, consisting of the President and advisors, has
administrative and regulatory authority to carry out federal laws.
The judicial branch, consisting of the Supreme Court and a network
of subsidiary lower courts, interprets federal laws.
C. Taxation
Tax in the US is imposed at both the federal and state levels,
and in some instances at the local, county or city level. Federal
tax authorities must rely on state law to determine a taxpayer’s
property rights. Almost all transactions have a federal-level tax
consequence as well as a state one. Partial offsets for state taxes
are usually available in determining federal tax.
Jennie Cherry TEP
Kozusko Harris Duncan, US
Tina Albright TEP
Curtis, Mallet-Prevost, Colt & Mosle
LLP, New York, US
Stanley A Barg TEP
Kozusko Harris Duncan, US
Thomas Kenney TEP
Fiduciary Trust International, Los Angeles,
US