Client Matters
Sample List of Client Matters
She has since learned she will be subject to the U.S. federal estate tax on U.S. situs property upon her death and as a non-U.S. person, she has only a $60,000 exemption amount against this tax. We consider the investor’s intended use of the property, the time horizon for owning the property and resulting increase in other taxes, such as corporate taxes, branch profits taxes and personal income and estate taxes, to determine the best form of ownership. We utilize both U.S. and foreign business entities so the investor will maintain control over the properties during her lifetime and will no longer be subject to the U.S. federal estate tax upon her death.
The individual had created an offshore trust and funded it with some business interests several years ago. Before the individual is considered a U.S. person for U.S. estate tax purposes, we must assess the consequences triggered by this change in status in relation to the trust. Finally, we determine the best option for either avoiding or minimizing these consequences along with creating a U.S. estate plan for the individual, once settled here.
The U.S. citizen is concerned about protecting the inheritance her children will eventually receive and wants to ensure it stays in his family line long after she is gone. U.S. trusts can be taxed heavily under German law, however, so we coordinate with German counsel on the best ways to shift assets from a U.S. person to German persons while still achieving the client’s estate planning goals.
They also stopped filing U.S. income tax returns. The clients want to see if they are considered non-compliant with the IRS and if so, they want to weigh all of their options in order to become compliant and avoid significant penalties. We are able to file all returns and required reporting forms retroactively. The clients give up their green cards formally and are now able to state they are in compliance with all U.S. taxes.
His surviving spouse is told by the financial institution holding the stock that she cannot have access to the stock until a federal transfer certificate is issued by the IRS. The wait times for these certificates is as long as three years. We are able to argue that the decedent had enough of a nexus to a U.S. probate court to open a probate matter. This U.S. based authorization is enough for the financial institution to release the account to the surviving spouse without waiting for the federal transfer certificate.
He seeks advice on the most tax-efficient way to accomplish this, to avoid the exit tax (a trigger on worldwide capital gain) and to avoid the status of ‘covered expatriate’ going forward. We work with Dutch counsel to coordinate the shifting of assets over time in order to avoid gift taxes in both countries during life. The green card can then be given up without the trigger of the exit tax or incurring the status of ‘covered expatriate’ under U.S. law.
which includes gathering asset information, which included real estate development projects and an insurance business, preparation and filing the U.S. federal estate tax return, addressing payment of federal estate tax from an illiquid estate, defense of lifetime gifts of business interests with discounts, setting up and funding trusts dictated by estate plan, informing trustees of fiduciary duties, charting the best way to report fiduciary income with deductions available and reporting and accounting to beneficiaries. arranging for payment of federal estate tax with illiquidity in the estate, defense of all lifetime gifts of business interests with discounts, setting up and funding trusts dictated by the estate plan, informing trustees of fiduciary duties, charting the best way to report fiduciary income with deductions available and reporting and accounting to beneficiaries.
