International families are often unaware of planning challenges they may face when leaving wealth to beneficiaries in the United States.
In recent years, the movement of wealthy individuals and families to the U.S. from Asia, Latin America, the Middle East and elsewhere has increased, perhaps for reasons including standard of living, security concerns, and business opportunities.
The movement of international families to the U.S. can sometimes be unplanned. Take the example of a child coming to the U.S. to attend college or graduate school and remaining after graduation to begin a professional career. The graduate may marry a U.S. resident and have children here (who are automatically U.S. citizens), and it may become convenient or even necessary to become a U.S. citizen or permanent resident. The end result is that an international family that had no intention of moving to the U.S. now has a branch of the family permanently established here.
Whether planned or unplanned, families transitioning to the U.S. often do not understand all the financial implications of their moves – and they often don’t realize that there are planning structures that can be highly beneficial to their families and heirs. Taking advantage of these planning opportunities can help to preserve wealth across generations, reduce tax implications, and better mitigate liability concerns.
International families with children in the U.S. are often unaware of the problems that their children may face upon receiving or inheriting wealth. These problems may include:
While having an heir in the U.S. can introduce these additional planning challenges for affluent international families, your advisor can help select strategies to help address these concerns and mitigate associated risks.
Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, Raymond James financial advisors are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.