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Bay Area Estate And Tax Planning Law Firm
Estate Planning
Trust Administration and probate

Taxes often a spiked concern for Americans with foreign holdings

| Feb 1, 2019 | Uncategorized |

It’s complicated.

When it comes to Americans and their filing of taxes, it’s always been complicated. Indeed, the United States tax regime is known worldwide for its comparative intricacies and exactions.

For starters, notes a recent CNBC article, the U.S. “imposes taxes on its citizens no matter where they choose to live.” And Americans must continue to file and often pay taxes annually whether they maintain ties with the country or not.

We know that some readers of our Bay Area estate planning blog at the Law Offices of Connie Yi know all about that. We have spoken to some special concerns and challenges posed for expatriates with overseas assets in select prior posts. That singular demographic often confronts a few extra wrinkles when it comes to financial planning and estate administration.

First, there are those pesky – and multiple – reporting requirements, which the above CNBC piece speaks to in some detail.

And now there is this: some Americans intent on surrendering their U.S. citizenship have to cough up a so-called “exit tax” for the privilege. Reportedly, the levy is currently $2,350 for filers having a net worth north of $2 million.

And that is not all. Some national lawmakers are now proposing that a far pricier “wealth tax” than that be assessed against truly well-heeled expats seeking to cut all citizenship ties. One idea being floated suggests an annual levy of 2% on individuals with $50 million or more in assets, and 3% on those with a billion dollars or more, respectively.

That is some serious money, of course, and the IRS will unquestionably be adamant about collecting it if given a mandate to do so.

Tax considerations are a key component of a solid strategy for virtually any estate planner, and particularly so for wealthier individuals and couples, especially if they have overseas interests.

Questions or concerns regarding tax matters linked with long-term planning can be addressed to a proven estate administration attorney who routinely promotes the financial interests of diverse and high-net-worth clients.

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