Sharing and Use of Personal Data The solutions or tools of estate planning and wealth management that could be utilized in any given situation may include (but by no means are limited to): Most of these tools are very familiar and frequently utilized by domestic financial planners and estate planning attorneys to assist single and multistate U.S. families. CROSS-BORDER ESTATE PLANNING By: Gideon Rothschild Moses & Singer LLP 405 Lexington Avenue New York, New York 10174 (p ) (212 ) 554-7806 (f ) (212 ) 554-7700 email@example.com www.mosessinger.com I. A United States expat family, a U.S. person married to a non-citizen spouse, a non-U.S. person investing in the United States, or other families with multiple nationalities, will need to have an investment plan that is correctly in sync with a tailored cross-border estate plan. For instance, a special trust to benefit your family members may in certain cases minimize U.S. estate tax and protect your wealth. Within the cross-border context, individuals would be wise to seek legal counsel with a specialized focus on estate planning in the relevant jurisdictions. On the other hand, the majority of European, Latin American, and African nations have civil law systems. While the global income taxation of U.S. citizens gets far greater attention, U.S. transfer taxes apply no matter where a U.S. citizen lives, gifts property, or dies. Domicile is acquired by living in a jurisdiction without the present intention of leaving at some later time. All references to “personal data” in this policy mean information that could be used to identify an individual, including, but not limited to, name, address, email address, or phone number. These include the treaties between the United States and Austria, Denmark, France, Germany, the Netherlands, and the United Kingdom. INTERNATIONAL ESTATE PLANNING: PLANNING FOR THE CROSS-BORDER FAMILY I. The Cross-Border Estates Global Special Interest Group addresses the domain of estate planning and the administration of estates/successions across international borders, with a focus on reconciling divergent inheritance rules between civil code jurisdictions, common law jurisdictions, and other codes of law. Currently, the United States has estate and/or gift tax treaties with sixteen sovereign nations (see Appendix A). CROSS-BORDER ESTATE PLANNING: CANADIAN PARENTS OF U.S. CHILDREN U.S. transfer taxes (U.S. gift, estate and generation skipping taxes) should be a concern to any practitioner creating an estate plan with U.S. links. We specialize in U.S. & Canadian immigration financial strategy. If the QDOT is created after decedent’s death, the surviving spouse is treated as the grantor for income and transfer tax purposes. Cross-Border Estate Planning You may need cross-border estate planning if you: Own a Canadian company with a U.S. subsidiary or that earns a significant amount of income in the U.S. Want to retire in the U.S. or spend a significant amount of time in the U.S. in retirement MCA Cross Border Advisors, Inc. is a registered investment adviser. Accordingly, the QDOT can be a critical wealth planning tool for deferring the estate tax until distribution to eventual U.S. citizen heirs when the surviving spouse is a non-U.S. citizen. If an individual and his or her family have ties across the border, either through residency, citizenship, domicile or the location of an asset, it is important to obtain legal advice from experienced lawyers who can assist in identifying critical issues and preparing a coordinated and effective cross-border estate plan. UK levies âinheritance taxâ and France âsuccession taxâ, but luckily a specific double tax treaty means only succession tax will apply to your estate if you are resident and so deemed domiciled in France. Will Todd is an independent lawyer who provides cross-border tax and estate planning advice to individuals and families from his downtown Vancouver office. Perhaps one of the more dangerous routes that an expat family could take would be to rely upon the estate planning that was done before leaving the United States. This exposes distributions from the trust to potentially higher German transfer taxes. There may be real property in various jurisdictions, separately or jointly titled, personal property also spanning the globe, limited partnership interests (e.g., hedge fund, private equity, or structured products), joint brokerage accounts, individual brokerage accounts, pension funds, defined contribution plans, IRAs, Roth IRAs, and college savings or UTMA/UGMA accounts for the children. With a QDOT, only distributions from principal during the surviving spouse’s life and at the surviving spouse’s death are subject to estate tax (insofar as they exceed the original decedent spouse’s exclusion). Broadly speaking, civil law systems are based on Roman law, and statutes tend to be longer, more-detailed, and leave far less discretion or interpretative influence to the courts. Cheyenne received her J.D. Box 68 Toronto, ON M5K 1E7, Toll Free: 888-365-6235Phone: 416-363-3336Fax: 416-363-9570, U.S.-Canada Cross-Border Will and Estate Planning, Cross-Border and Multijurisdictional Estate Matters, Contact Us – Estate and Trust Administration, Multijurisdictional Estate Administration, Multijurisdictional and Cross-Border Will and Estate Planning, Cross-border incapacity planning including use of a power of attorney in U.S. jurisdictions, Cross-border will planning and separate situs wills, Cross-border trust planning including Canadian trusts to hold U.S. situs asset. Please fill your name, email, check the consent box, and click subscribe. These “permitted” uses may include: Estate planning cannot be done in a vacuum, and it requires experienced advisors who are knowledgeable about cross-border issues. This is partially because all (save Louisiana) states share the same legal foundation: English common law. Does your estate plan have a U.S. connection? As a result, a major part of her practice is related to cross border U.S. â Canada transactions and estate planning, including estate, gift, and generation skipping tax issues. The particular status of the taxpayer will have significant income and transfer tax consequences, and of course, the particular distinctions vary by country. Terry Ritchie featured in The Insurance & Investment Journal article, Managing Cross-Border Clients. This article does not constitute legal or tax advice, nor a solicitation to obtain clients to provide legal or tax advice. Moreover, a laissez-faire attitude to estate planning is far less justified if the U.S. citizen client is married to a non-U.S. citizen. As a regulated investment advisory firm, we take reasonable and appropriate measures at Thun Financial to protect against the unauthorized or unlawful use of your personal data and to prevent the theft or accidental loss or destruction of your personal consistent with our internal and regulatory security policies and procedures. Cross Border Estate Planning for Canadians. How those tiebreaker rules operate will depend on whether the treaty follows the newer or the older situs rules in U.S. estate tax treaties. We will otherwise only use your personal data internally in connection with our ordinary professional activities as an investment advisory firm. We can help you understand how U.S. estate tax could affect your estate planning and how to minimize taxation in both jurisdictions through careful specialized estate planning. Estate Planning Advisor. This course addresses civil-, common- and Shariâa-law systems and case studies from a diverse range of jurisdictions, making it relevant to an international audience. Moreover, while each sovereign has their own rules and interpretations of situs rules, the U.S. regime can be somewhat instructive for other countries’ situs rules. through the probate system. Correctly tailoring that cross-border estate plan will require legal and tax experts with a deeper understanding of the relevant estate/ succession/gift/generation-skipping transfer (collectively Connections: Key Cross-Border Estate Planning Strategies. Cross-border families and multinational asset portfolios add substantial complexity to the financial planning needs of global families. Join our mailing list to receive the latest news and updates on cross-border investing issues. As a registered adviser, Thun Financial guards its client’s personal and financial information in the strictest of confidence. • During the initial or any ongoing financial planning process with a client; Whether the property is situated in the foreign country; Whether the property is subjected to transfer/death taxes; Whether the property is properly included in the gross estate. SCOPE OF OUTLINE More and more of the clients who come to us for estate planning bring issues that involve other countries. Michael Cirone is a Canadian and U.S. lawyer with 20 years of experience providing cross-border personal tax and estate planning services. However, the American taxpayer needs to be mindful that special disclosure rules apply to gifts or bequests received from foreign persons (or entities). 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