what does it mean by "foreign trust"

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For tax purposes, a foreign trust is defined under Treasury Regulation §301.7701-7 as a trust where:

1. The term foreign trust means any trust other than a domestic trust.
2. A court outside the United States has primary supervision over the administration of the trust.
3. One or more non-U.S. persons have the authority to control all substantial decisions of the trust

For more detailed guidance, you can refer to the following sources:

• Guidelines on Foreign Trust Reporting Requirement