Wednesday, August 19, 2020
International travel has dropped significantly in the wake of the COVID-19 pandemic. However, people around the world are still needing to travel for employment. Also, those who own or inherit assets outside of their regular homes are traveling as well. For the latter, International Estate Planning is a must.
"International Estate Planning are the strategies and tactics used to achieve U.S. and Foreign clients objectives."
These strategic objectives include:
- Maintaining control and ownership of wealth and property during the client's lifetime and after their death.
- Providing financial security not only for the client but also for their spouse, children and other beneficiaries.
International Estate Planning is also a very efficient way to enhance personal, business and family wealth management. "This most often means making your actions tax-efficient especially in regards to U.S. Income, Excise, Estate, Gift, and Generation Skipping Transfer Taxes, as well as foreign income, estate, gift and excise taxes as well as the issues raised by the conflicts of laws, the transparency of financial transactions and compliance with restrictions on the use of tax and asset protection havens."
One issue with International Estate Planning is that many clients are concerned about opening their financial accounts and tax information "not just in the context of the United States, but of any country with which the client may have a tax connection." This raises a confidentiality issues that is sure to make certain clients uncomfortable.
Clients should be informed about the risks of International Estate Planning and should also know (1) if they are a part of the two groups that it affects and (2) when International Estate Planning is triggered.
See, Matthew Erskine, International Estate Planning, Forbes, August 10, 2020.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.