Citizens are taxable on world wide income. Ownership of foreign assets sometimes is penalized. If you have investments in foreign mutual funds, which be perfectly thing to do if you're living and investing abroad,. those four mutafunds are typically taxed as passeve for an investment companies, or pefix. You essentially pay ordinary income tax instead of capital gains, and you get charged interest as if you underpaid your tax when you sell off the investment. The right move around these issues, and you can't just get around them with novel stuff doesn't actually work.
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International and Cross-Border Planning have been a major issues for high net worth clients for as long as there have been borders. It’s an enormous topic.
Jobs, new family situations and geopolitics often send people to different countries for different opportunities. All of this can have tax implications around an estate plan . . .
Add in the complications of new asset classes and confusion around citizenship, residence and tax obligations. There is a lot to consider- especially for U.S. citizens with connectivity abroad.
Here to help us think about that is BRENT NELSON . . .
Brent is a Partner at the RIMON LAW FIRM in Tuscon, AZ and represents a variety of cross-border clients.
