Can a Non-U.S. Citizen Be a Trustee of a U.S. Revocable Living Trust?
By Mike Massey Law, PLLC – Estate Planning You Can Trust
When creating a revocable living trust, choosing the right trustee is one of the most important decisions you’ll make. But what if the person you trust most is not a U.S. citizen? Can they legally serve as trustee? And what if they’re a non-citizen but live in the U.S.?
Let’s break down what U.S. law allows—and what smart estate planning looks like when your trustee isn’t a citizen.
Quick Answer: Yes—With Some Caveats
A non-U.S. citizen can legally serve as a trustee of a U.S.-based revocable living trust. However, it’s generally not recommended since certain factors may trigger complications, especially regarding:
-
U.S. income taxation of the trust
-
Situs (legal location) of the trust
-
Court jurisdiction and asset control
-
Potential classification of the trust as a foreign trust (which triggers IRS scrutiny)
🧾 What About Non-Citizen U.S. Residents?
If your proposed trustee is a lawful permanent resident (green card holder) or a visa holder living in the U.S., then:
✅ They can generally serve as trustee
💡 Tip: Use a U.S. address and U.S.-based bank or brokerage accounts to reduce risk of foreign trust classification.
🌍 But If the Trustee Lives Outside the U.S. and Is Not a Citizen…
You could trigger foreign trust rules under IRC §§ 7701(a)(30)(E) and (31)(B). A trust is considered domestic if it meets:
-
The Court Test – A U.S. court must be able to supervise the trust.
-
The Control Test – U.S. persons must control all substantial trust decisions.
If either test fails, the trust could be treated as foreign by the IRS—even if created in the U.S.—which leads to:
-
Complex annual IRS filings (e.g., Forms 3520, 3520-A)
-
Potential penalties
-
Loss of favorable tax treatment
✅ Best Practices:
-
If your trustee is a non-citizen but U.S.-based, you’re generally fine—just keep banking and trust administration in the U.S.
-
If your trustee is foreign-based, consider:
-
Adding a co-trustee who is a U.S. citizen or resident
-
Naming a U.S.-based successor trustee
-
Keeping major decision-making control within the U.S.
-
📌 Summary:
| Trustee Status | Can Serve as Trustee? | Considerations |
|---|---|---|
| U.S. Citizen | ✅ Yes | No issues |
| Green Card Holder | ✅ Yes | Keep trust situs and assets in U.S. |
| H-1B / H-4 Visa Holder (U.S.-based) | ✅ Yes | Use U.S. address and bank accounts |
| Non-Citizen Living Abroad | ⚠️ Possibly | May trigger foreign trust classification |
📞 Need Help?
If you’re a non-citizen living in Texas, you can hire Mike Massey Law to create a revocable living trust for you. We create customized estate plans that work.
👉 Book your free consultation here: https://mytxwills.com/book-a-meeting
📜 Disclaimer
The information provided in this blog post is for general informational purposes only and is not legal advice. Reading this blog does not create an attorney-client relationship with Mike Massey Law, PLLC. For advice specific to your situation, please contact a licensed attorney.
