Our attorneys help U.S. citizens and non-U.S. citizens who require estate planning for assets held overseas. We provide advice on the U.S. tax obligations of grantor, trust, and beneficiaries, as well as ensure U.S. creditor protection where appropriate.
We also tailor trusts to fit the beneficiaries’ and grantors' circumstances where such person(s) may reside outside of the United States. This advice can be appropriate for lifetime giving and estate planning. We also provide tailored advice on the U.S. exit tax to those U.S. citizens who may be considering expatriating from the United States.
We advise U.S. citizens who are married to non-U.S. citizens on the benefits of a qualified domestic trust (QDOT) should the noncitizen spouse survive the citizen spouse. U.S. residents are limited in what they can give to a noncitizen spouse free of estate tax, but a QDOT can preserve estate tax deferral when U.S. property passes to a non-citizen spouse. We also provide advice on the effects of the various U.S. estate and gift tax treaties in effect with countries around the world and on the U.S. taxation of noncitizens’ U.S. holdings and U.S. citizens’ holdings worldwide.
Our attorneys design and implement offshore trusts and corporate structures, and work extensively with local counsel in several offshore jurisdictions for clients with foreign assets and/or trusts. At a client’s death, these structures can serve to preserve wealth for future generations on the terms specified by the client, through minimizing or eliminating death tax liabilities and avoiding foreign forced heirship rules. These structures can also streamline the administration of the client’s estate by minimizing the burdensome filing obligations and uncertainty associated with multi-jurisdictional, international estate administration. Our clients include international investors, businesspersons and royal families with multi-jurisdictional assets that in some cases exceed several billion dollars.
Our attorneys are skilled in navigating the complex U.S. exit tax rules to determine whether such rules apply to a U.S. person who may be considering expatriation from the United States. Such taxes are separate and in addition to the ordinary taxes most people think about and are specific to those who are deemed “covered expatriates.” If applicable, a person would be subject to an immediate “mark to market” tax on his or her worldwide assets, as if those assets were sold for a fair market value (with some exceptions). We can advise clients as to whether the U.S. exit tax could apply and can suggest steps that might be taken to limit exposure to such tax.
We can assist clients in complying with U.S. tax filing obligations, including reporting of any foreign income and foreign financial accounts. Our attorneys are experienced in helping clients become compliant with their delinquent filings with respect to reporting foreign income and/or foreign assets, and can guide them through the various options available to them, under the IRS disclosure programs.