How can cross border families plan for international estate planning? Can they get any help from an estate planning attorney near me 11561? What are the different ways in which an attorney can assist such families to overcome such complexities involved? Well, there are different ways of doing so.
An estate planning attorney near me 11561 possesses all the knowledge and power to help such distressed families. The attorneys can offer a wide range of services pertaining to international estate planning such as domestic wills for noncitizens of a nation, foreign business entities, preimmigration planning, etc.
How Does International Estate Planning For Cross Border Families Work?
Cross border families (US person living abroad or have a US spouse, have a green card or even invest within the US) while creating an international estate plan must understand the relevant rules and concepts regarding estate tax laws, gift tax laws, trust, successions, etc. of the country where estate distribution will occur, or where assets are held at the time of death. The laws are pretty simple for US couples with no cross border spouse but things can get complicated when either of one is from a cross border. If you don’t take adequate knowledge of these concepts you might have some very serious repercussions. Your assets might get transferred to wrong beneficiaries or they may end up paying a huge amount of tax. Hence for your convenience we are listing here a few international estate planning considerations for a green card holder, other U.S. connected person and an American expat.
Basic US Estate Tax Laws
If you are a US citizen the maximum rate of gift and estate tax is 40%. Also, you are entitled to a whooping $22.8 million exemption if you are a green card holder as well. However, if you are a non-resident alien residing in a country with which the U.S. has an estate tax treaty, then you may have preferential estate and gift tax treatment like mentioned here. But if there is no tax treaty, you may face significant U.S. taxation of your U.S. situs assets as you will only be liable for a $60,000 estate tax exemption.
What Challenges Can Multinational Families Face Abroad?
US citizens as well as their financial consultants often get involved in multi-jurisdictional estate planning affairs. An average US citizen may possess multiple properties in various states. In addition, in some situations, the american citizen may be married to a French citizen and may also own a joint property in Switzerland. Now in such situations the transfer tax planning conundrum may actually become difficult. Also, it is an intricate situation which requires help of a professional estate planning attorney near me 11561.
Estate Planning Attorney Near Me 11561 Tells About Situs
Situs is an imperative term used in cross-border estate planning. The said situs rule states that the assets that are physically present in the US come under federal estate tax. However, situs rules for said intangible assets are complex to understand. For example, as asset may be non-US situs for gift tax but under estate planning, it comes under US situs criteria.
Situs Criteria for Non-Resident Foreigners and US Tax
Here are the criteria for considering Situs for non-resident foreigners as well as US tax:
Real Property
All the assets that come under real estate, such as fixtures, land, and buildings that are situated in the US are known as US Situs.
Intangible Property
For this aspect, the US Situs actually depends upon the basic character of the investment made. Also, the funds that are used along with Us trade or business and are help in either bank or brokerage come under this very aspect.
Tangible Property
The assets that are physically present in the US also come under US Situs. These include assets such as jewelry, gold, pieces of art, dollars, etc.
Role of Situs in International Transfer Taxation
For a non-US person, the transfer tax for the said estate depends upon four factors:
- Physical location of the assets;
- The gift tax treaty between the residential nation and US, domicile rules, etc;
- Tax credit availability;
- Nature of the assets.
US citizens come under federal estate tax for their global assets. However, a non-resident foreign national’s estate is subjected to federal estate rules only for the US Situs. In fact, Situs plays an imperative role for cross-border families. This is where an estate attorney comes into the picture who can explain the role of Situs in detail.
