As a full-service wealth management advisory firm, WorthPointe advisors weigh in on issues like the ones noted in this article during the planning process. Those who have these one-off challenges would be better served to speak with a local tax lawyer to gain the required advice.

As a U.S. citizen married to a non-citizen, or vice versa, you and your spouse may find yourselves asking big questions when it comes to estate planning and understanding the complexity of your financial picture. You’re not alone; it’s common for cross-border executives and their families to struggle with navigating tax law and regulatory restrictions. The challenge is that each country has it’s own set of rules and complexities that play into that picture. Your financial planning requires careful calibration and legal support to properly factor in income and assets acquired within and outside of the United States. Not one single advisor can tackle all this for you, but a team can.

When approached by clients and prospective who have either been living or planning on relocating outside of the United States, WorthPointe involves key advisors such as attorneys, customs and immigration specialists, as well as tax advisors with expertise in cross-border planning. As our clients’ fiduciary, our goal is to protect and improve their future based on their overall financial picture. To do this successfully, we put together a tailored team to assess the potential pitfalls specific to our cross-border clients.

While these points of conversation are inherent for all of our clients’ financial plans, for cross-border executives, they require double the attention in order to minimize risk and maximize benefits under either country’s governing laws:

• Residency: The type of residency status taken in the United States or abroad will affect how estate and income tax rules are applied. Take extra care to apply for the residency status best suited for your needs and understand the tax issues involved before making the move. Immigration attorneys can walk you through your options and proper procedures.
• Estate planning and gifts: The United States has specific tax laws targeting the transfer of assets from one family member to another. Understanding how those get applied when the asset or the individual is within the U.S. versus outside the U.S. is an important detail. Timing of the transfer also heavily dictates the amount of taxation. Local tax attorneys and CPAs can help clarify your questions and concerns.
• Taxes: Tax attorneys and CPAs will also be able to help address your income tax returns and give direction as to the best avenues available to maintain the wealth acquired.

The team of specialists inform our financial advisors as we pursue our clients’ specific goals through their personalized financial plans including:

• Retirement planning and solutions.
• Portfolio investing and oversight.
• Charitable contributions.
• Estate planning and trusts.
• Additional financial goals such as real estate investments, generational financial planning, and business development.

Each client and their family has unique needs. This is no different for cross-border executives and their spouses. What aids in the success of an individual’s financial plan is thorough investigation and education on nuanced legal and tax issues affecting their goals. As a partner on our clients’ journeys, we can help you get in touch with professionals and experts who can support you in these areas and more.