Transfer tax planning for high net worth clients can be sophisticated. When the client is a foreign national, planning becomes even more complex due to the myriad of tax rules based on residence, citizenship, type and situs of property, and how the property is being transferred– as a gift during lifetime, or as a bequest at death.
Below are 4 general charts that help navigate through the rules. Treaty agreements between the U.S. and the non-citizen’s home country may alter or replace the general rules discussed herein.
Part of a Series on Planning for Foreign Nationals
Individuals who are residents of the United States but who are not citizens (commonly referred to as “resident aliens“) are subject to the same estate and gift tax rules as U.S. citizens. However, there are two important distinctions to consider when it comes to transfers between spouses who are not both U.S. citizens.
Regular reviews of inforce life insurance policies are essential and can uncover important planning opportunities. While conducting a policy review, advisors may uncover an older policy that has a significant policy loan. If not addressed, these policies can become a tax time bomb. When it comes to policy loans there are 4 available options to weigh, all of which have their own set of benefits and considerations.
Like other financial assets, life insurance policies require ongoing management. A policy check-in helps ensure life insurance policies continue to address a client’s changing needs and that the policies are performing as expected. A policy review also serves as a touch-point in an advisor’s relationship with clients. Here are 10 reasons why a policy review is essential to the client-advisor relationship.
Did you know:
- Cardiovascular disease is the number one cause of death in the United States, accounting for close to over 800,000 deaths per year. It is also the leading cause of death globally, accounting for more than 17 million deaths per year in 2013.
- Heart disease is not exclusively a man’s problem: Heart disease is the number 1 killer of women as well.
- About 92 million American adults are living with some form of cardiovascular disease or the after-effects of a stroke.
Bob Finnegan, Sr. Vice President, Advanced Planning Attorney with Highland Capital Brokerage spoke to an audience of high end financial advisors at the Elite Financial Advisor Conference on January 11 hosted by Janney Montgomery Scott. Bob addressed how current planning tools that were not adversely affected by the new 2017 tax act are ideally flexible and particularly suited to help clients hedge against all the threats to wealth, not just taxes—regardless of what happens in Washington.