When a donor/settlor transfers securities to a foreign trust, the transfer is generally considered a taxable event for the donor/settlor and is subject to capital gains tax. The value of the securities for tax purposes is typically based on the fair market value of the securities on the date of the transfer.
According to IRS Publication 551, Basis of Assets, "If you give property to a foreign trust, you are considered to have sold the property at its fair market value."
The fair market value is determined based on the average of the high and low prices of the securities on the day that the securities leave the donor's account. The trust's holding period for the securities begins on the date of the transfer, which is the date that the securities leave the donor's account.
Regarding the delay in the arrival of the securities to the donee's account, the value of the securities for tax purposes is based on the fair market value on the date of the transfer, regardless of when the securities actually arrive in the donee's account.
You can find more information about the tax basis of like-kind gifts to foreign trusts in IRS Publication 551, Basis of Assets and in IRC section 1001 which governs the determination of gain or loss when property is transferred.
It's always recommended that you consult a tax professional or attorney before making any gifts, especially gifts to foreign trusts, as the tax implications can be complex and vary depending on the specific details of the gift and the trust.
here are the links to the IRS publications that I mentioned:
IRS Publication 551, Basis of Assets:
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IRS Publication 559, Survivors, Executors, and Administrators:
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Both publications provide information on the tax basis of assets, including gifts to foreign trusts. Publication 551 provides general information on the basis of assets, while Publication 559 provides information on the basis of assets for decedents' estates.
It's always a good idea to check for updates to these publications or consult a tax professional for the most up-to-date information