Arguably, you’ve got – and perhaps in a literal sense – the best of all worlds if your estate plan contains both U.S.-based assets and foreign accounts/property.
You might also have a bit of a challenge and a few attendant headaches keeping up with your diverse holdings.
We mean by that the compliance measures you must undertake in response to close scrutiny you can expect from American tax authorities. We note at the established Bay Area Law Offices of Connie Yi that the IRS “may require those who have ownership in foreign assets to disclose the assets through the use of specific paperwork.”
Lots of paperwork. Complex and detailed documents. Disclosures that can lead to legal hot water if deemed inaccurate or purposefully misleading by regulators.
We underscore on a relevant page of our website the flat necessity of any individual or family with foreign assets to timely note IRS exactions regarding them and to comply with all requirements.
Failure to do so can yield multiple and severe penalties. Those can range widely from punitively high fines to lengthy prison terms.
Getting it right concerning tax duties on foreign accounts is obviously of critical importance in any case where an estate planner makes provisions for heirs and beneficiaries. It is certainly optimal for a plan creator to ensure tax compliance in lieu of loved ones having to do so in the future.
A proven estate planning attorney with an integrated professional background in foreign asset tax compliance can help a planner achieve that goal.