For non-US persons, there are specific income taxes and transfer taxes that affect their estate planning. For example, the federal estate tax is a tax imposed at death for the transfer of any wealth from the decedent to any person inheriting. Specifically, this estate tax is very expensive – to the tune of 40%. If an individual attempts to avoid the estate tax by transferring assets while they are alive, then there is a gift tax to plan around – also to the tune of 40% if it gets triggered. The rules for non-US persons differ substantially when it comes to gift and estate tax planning.
At Bridge Law, LLP, we specialize in cross-border estate planning. Our aim is to find a tax-efficient plan that works for your family and your assets both in the U.S. and your home country. Sometimes, a good plan domestically can lead to a nightmare of a tax situation overseas, while a solid plan in your home country still exposes you to substantial costs domestically. Therefore, a thorough understanding of your assets, your tax situation, and your short and long-term goals is a critical first step.
The following links may be helpful in planning ownership of your US assets, when it comes to tax planning: