An example of using an offshore trust to minimise US tax exposure

Mr White is a US national living in Argentina. He is married to an Argentine and they have two children. Mr White wishes to minimise his US tax exposure and to be able to receive funds regularly to build up capital for retirement and to pay for his children's education. From a US perspective all income and capital gains are reportable, thus the assets need
to be held in his wife's name so she settles the trust as shown below: