FOREIGN NATIONALS TAX CONCERNS THE ESTATE-TAX PITFALL
MANY NON-RESIDENT FOREIGN NATIONALS (NRFN) BUY REAL ESTATE OR OTHER ASSETS BASED IN THE USA. WHILE THIS CAN BE A BENEFICIAL BUSINESS DECISION, THERE ARE TAX REALITIES OF WHICH SUCH BUYERS SHOULD BE MADE AWARE.
WHEN A U.S. CITIZEN DIES, THERE IS AN ESTATE TAX EXEMPTION OF $11,200,000 FOR AN INDIVIDUAL (AS OF 2018).
HOWEVER, FOR NON-RESIDENT FOREIGN NATIONALS (NRFN), THE EXEMPTION IS ONLY $60,000 OF ESTATE VALUE PER PERSON. THIS MEANS THAT NEARLY ALL OF THE ESTATE VALUE MAY BE TAXED AT THE ESTATE TAX RATES (BASICALLY 40% OF THE ASSET VALUE AS OF THE DATE OF DEATH FOR LARGER HOLDINGS).
THIS CAN CAUSE A MAJOR LOSS TO THE BENEFICIARIES OF THE NRFN, BUT IT DOES NOT HAVE TO BE THIS WAY!
WE ARE ABLE TO ASSIST NRFNs TO PROTECT THEIR ASSETS AND PROVIDE FOR THE POTENTIAL TAXES THAT COULD BE DUE UPON THEIR DEATHS. THIS IS ACCOMPLISHED THROUGH A NON-TAXABLE PLANNING VEHICLE, WHICH CAN BE USED TO PAY THE TAXES AND ALLOW THE PROPERTY TO CONTINUE TO BE HELD OR LIQUIDATED AS MAY BE DESIRED BY THE BENEFICIARIES.
WHAT IS VERY BENEFICIAL IS THAT WE ARE ABLE TO PROVIDE THESE ADVANCED PLANNING VEHICLES FROM U.S. COMPANIES ON NRFNs. THESE VEHICLES AND THE USA COMPANIES THAT PROVIDE THEM ARE HIGHLY REGULATED, HELPING TO PROVIDE PEACE OF MIND AND SECURITY FOR THE FUTURE.
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