International Tax Planning 101

Marriages and families of mixed citizenship and nationality present unique cross-border wealth management issues.  As an international financial advisor, Frederic Behrens addresses several tax disparities between spouses who may be nonresident aliens (NRAs) and U.S. residents/citizens, where planning is helpful to optimize a family’s global balance sheet. His two articles on these topics were recently published in leading wealth management and estate planning journals.

Understanding U.S. Tax Statuses

In his article titled “International Tax Planning 101”, Frederic answers a variety of common questions posed by non-U.S. citizen and U.S. expat investors. U.S. citizens are subject to income and estate & gift taxation by virtue of their U.S. citizenship. For non-U.S. citizens, it is critical to understand how the concept of residency (income taxation) is different than domicile (estate & gift taxation) to determine U.S. taxability. The short article provides a brief overview of some basic international tax concepts that international financial advisors assist clients with:

  • When is a non-U.S. citizen subject to U.S. income tax?
  • What makes a person a U.S. domicile subject to U.S. estate and gift tax?
  • What taxes are imposed on nonresident aliens?

Estate Planning for Mixed Nationality Families

Once U.S. tax statuses are understood, there many different cross-border wealth management considerations for mixed nationality families. Given the different U.S. income and estate tax statuses, there may be some very strategic options for international investment advisors to setup various trusts and legal structures for clients. A full-length article written by Frederic addresses these international estate planning concerns and investment strategies for mixed nationality couples in detail:

  • Pre-immigration financial planning strategies
  • Utilizing a qualified domestic trust (QDOT)
  • Gifting appreciated assets to non-resident alien spouses
  • Proper account titling and joint ownership
  • Developing a cross-border investment strategy
  • Working with an international wealth advisor

Frederic’s article titled “Estate Planning for Mixed-Nationality Families” was published in March 2020 edition of Trust & Estates magazine.

Working with an International Financial Advisor

Understanding and managing these issues is essential for cross-border families. With proactive financial planning and the correct advice, investors may avoid international investing pitfalls and excess taxation. Round Table Wealth Management is an experienced international financial advisor working with U.S. clients and non-U.S. clients. See below for some articles on relevant U.S. expat investing topics:

Working with an international wealth advisor who understands the impact of FATCA, U.S. citizenship-based taxation, expatriation, and other regulations that uniquely affect U.S. citizens living in another country and recent immigrants to the United States is vital. Round Table Wealth Management is experienced  advising high net worth individuals in the U.S. and abroad on all aspects of investment management and financial planning, including strategies for cross-border tax efficient investments, retirement accounts, estate planning, currency management, insurance, charitable giving and compliance with financial regulations in all applicable jurisdictions.

Sign Up For the Round Table Newsletter