In her article, Carol Clouse discusses a concept that is becoming more relevant in the United States within recent years: rich foreign nationals planning for the future of their bloodline in the US. Clouse explains,
Call it another stream in the flood of foreign money hitting the U.S, along with the cash and real estate investments of wealthy foreigners that are flowing here because of an ironic twist: The U.S. has become one of the world’s favored tax havens. Moreover, foreign family money is pouring in at a time when changes to U.S. tax law have all but eliminated estate transfer taxes, making the income tax aspect of estate planning the primary issue for the vast majority of wealthy families.
Strategies for the growing number of multinational family trusts and income tax strategies for estate planning in general, for example, were two of the most talked about themes at the recent Heckerling Institute on Estate Planning conference in Orlando, Fla.
“There was a whole international track at Heckerling this year. Five years ago that would have been unheard of,” says Suzanne Shier, chief wealth planning and tax strategist at Northern Trust, who spoke at the conference, along with the other tax attorneys and financial advisors interviewed for this story. The change reflects increasing relevance within the industry. “Ten years ago we pretty much assumed our trusts were domestic,” Shier says. “We can’t make that assumption now.”
A dramatic rise in the number of rich immigrants entering the U.S. is driving the demand for multinational estate planning, including a decade-long surge of professionals and entrepreneurs coming to the U.S. to live and work. But more interesting is the increasing number of wealthy families in other parts of the world who covet an American education for their children—who go to school here and often end up staying.
To continue reading the full story, click here: Death And Taxes For Wealthy Foreigners
Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal