Lately, we’ve been seeing more cases involving global citizens with significant U.S. assets.
Many of these clients, and even their advisors, are unaware of the estate tax exposure tied to those assets.
Global citizens often own U.S. real estate, business interests, and investment accounts. What is often missed is this: those U.S. assets are fully exposed to U.S. estate tax.
Unlike U.S. citizens, global citizens receive only a $60,000 estate tax exemption. Anything above that is taxable, up to 40%.
As U.S. assets grow, so does the exposure. Without planning, this can result in millions of dollars in unnecessary tax and forced sales of assets.
This is where advanced insurance planning provides a solution.
Certain U.S.-based carriers will insure global citizens. U.S. life insurance offers dollar-based, stable, private assets, with no 1099 reporting.
Even more important, personally owned U.S. life insurance is not included in the taxable U.S. estate. This makes it an effective tool for estate liquidity.
Most clients and advisors do not realize this.
Consider this example:
A global citizen owns $1.5 million in U.S. real estate. Without proper planning, this could trigger an estate tax bill of about $576,000.
With a properly structured U.S. life insurance policy, this liability could potentially be covered, helping protect assets and providing flexibility for heirs.
Today, underwriting for global citizens is more accessible than ever. Many carriers now have relaxed guidelines and streamlined programs.
As a European, I understand the nuances of these cases. Our team has helped many global citizens fund estate liquidity plans, helping protect both U.S. businesses and family wealth.
If you work with global citizens or expats who own U.S. assets, this is an excellent opportunity to bring them value.
We are here to help.
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Material discussed is meant for general informational purposes only and is not to be construed as a recommendation or advice. Please note that individual situations can vary therefore, the information should be relied upon only when coordinated with individual professional advice. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Exp 6/27
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