US Expatriates & Nonresidents With US assets -Why you Need a US Living Trust

If you have assets located in the US and want to avoid time consuming and expensive court probates

you need a living trust with respect to your US assets. Such a trust also assures you that your US assets upon your demise will go directly to the individuals you name as beneficiaries.  Read more in the Forbes articles the 10 reasons you need a a living Trust (over which you have total authority while you are alive) below.

Forbes: 10 Reasons Why You Need A Trust.

US citizens currently can bequeath over 11 million dollars in assets without incurring any estate tax. However US nonresidents with US assets will incur an estate tax on assets that exceed $60,000 in value.  There are techniques to avoid the US estate tax on nonresidents which can be used if title to your US assets are held in the proper manner. Let us know if we can help with your estate planning. Email us at ddnelson@gmail.com. We are US attorneys and CPAs. specializing in expatriates, nonresidents and international tax matters.  Visit our website at www.taxmeless.com

Estate Planning Tips For Expats from Motlley Fool

http://www.fool.com/investor-alert/1255/estate-planning-loopholes-dont-let-uncle-sam-inher/?iid=61836479&vsaid=7123&email=ddnelson%40gmail.com&dest_url=%2Finvestor-alert%2F1255%2Festate-planning-loopholes-dont-let-uncle-sam-inher%2F&src=eunlinsbr0860003

US EXPAT ARE STILL SUBJECT TO ESTATE & GIFT TAXES

Read below. As an expat you must include your assets everywhere in the world. Gifts include those made abroad.  Green card holders living abroad are not covered by these rules and will owe US estate taxes on US based assets exceeding $60,000 in total value.

http://www.timesdispatch.com/business/investment/time-to-check-the-list-for-financial-and-estate-planning/article_d9aa1b36-595b-5072-8360-5fe54d0dacab.html?mode=jqm

2014- Four Estate Planning Tips You Need to Know

http://www.fool.com/how-to-invest/personal-finance/taxes/2013/12/11/estate-tax-in-2014-4-things-you-need-to-know.aspx

Why US Expats and Residents May want to give gifts or do Estate Planning Before Year End

It might be wise for everyone to consider making gifts before year end to their children or other loved ones and consider other estate planning strategies. Previously its was thought Congress might extend the currently generous annual gift tax exclusion and the lifetime estate and gift tax exemption which is until the end of 2012 over $5 million.  In 2013 the exclusion will go back to $1 million.

Nonresidents (not a US Citizen or permanent resident) only get a $60,000 exclusion with respect to estate taxes on their assets located in the US.

If Congress decides the funds are needed next year due to the "Fiscal Cliff" they may not extend the current exemptions and now is the time to act.  Read more in the following Forbes Article Will the Estate and Gift Tax Boomerang?

We can help you with revise or amend your living trust, wills, and successfully make last minute gifts to tax advantage of the current rules which may end 12/31/12. Email us at ddnelson@gmail.com. 

New 2013 IRS Figures Of Interest to all Nonresident and Expatriate Taxpayers

Some of the new figures for 2013 which will come into play if you are a US expatriate, nonresident, or have international tax concerns are as follows:

Unified estate and gift tax exclusion amount. Under the sunset provisions of EGTRRA, for gifts made and estates of decedents dying in 2013, due to a law change, the exclusion amount will be $1,000,000 (down from $5,120,000 for gifts made and estates of decedents dying in 2012).

Gift tax annual exclusion. For gifts made in 2013, the gift tax annual exclusion will be $14,000 (up from $13,000 for gifts made in 2012).

Increased annual exclusion for gifts to noncitizen spouses. For gifts made in 2013, the annual exclusion for gifts to noncitizen spouses will be $143,000 (up from $139,000 for 2012).

Reporting foreign gifts. If the value of the aggregate “foreign gifts” received by a U.S. person (other than an exempt Code Sec. 501(c) organization) exceeds a threshold amount, the U.S. person must report each “foreign gift” to IRS. (Code Sec. 6039F(a)) Different reporting thresholds apply for gifts received from (a) nonresident alien individuals or foreign estates, and (b) foreign partnerships or foreign corporations. For gifts from a nonresident alien individual or foreign estate, reporting is required only if the aggregate amount of gifts from that person exceeds $100,000 during the tax year. For gifts from foreign corporations and foreign partnerships, the reporting threshold amount will be $15,102 in 2013 (up from $14,723 for 2012).

Expatriation, Citizenship and Green Card Surrender. For 2013, an individual with “average annual net income tax” of more than $155,000 for the five tax years ending before the date of the loss of U.S. citizenship is a covered expatriate (up from $151,000 for 2012). Under a mark-to-market deemed sale rule, all property of a covered expatriate is treated as sold on the day before the expatriation date for its fair market value. However, for 2013, the amount that would otherwise be includible in the gross income of any individual under these mark-to-market rules is reduced by $668,000 (up from $651,000 for 2012).

Foreign earned income exclusion. The foreign earned income exclusion amount increases to $97,600 in 2013 (up from $95,100 in 2012).

US Nonresidents with Assets in the US will have their US Estates Subject to US up to 34% estate taxes

US nonresidents with certain assets located in the United States will cause their estates to have to file US Estate Tax returns on the value of their assets (with some exceptions) located in the USA. The tax is based on the Fair Market Value of their Assets and can be up to 35%. Nonresidents only get an exemption from this tax equal to the first $60,000 value of the fair market value of their assets in the US. The balance  of the estate's assets are subject to the estate tax.  Real estate which was owned by a deceased nonresident is subject to this tax.  The estate can only deduct the mortgage balance due from the fair market value if the estate agrees to report to the IRS the value an details of the decedents worldwide assets including those in Mexico.

Due to the large chunk this estate tax can take out of a nonresident's estate, it is best to do some advance planning to attempt to reduce it.  Email us if you want help. Read more about the nonresident  estate tax here

US Estate Planning For Expatriates Around the World

You cannot ignore estate planning if you wish your US and worldwide assets passing to the heirs you desire. You also need to take the necessary steps to keep the costs and taxes at a minimum.  If you are an expat, that means you have to put the necessary documents in place in the country in which you reside and in the USA.  That also means you must coordinate the laws of two countries.

The US imposes its estate and gift taxes on your no matter where you live in the world and no matter where your assets are located in the world.

The US side involves Wills, Trusts, Powers of Attorneys and Health Care Directives.  It may also involve a program of gifting in order to keep the taxes down.  If you do it right, you can save tens of thousands of dollars in probate fees,and often a lot more in estate taxes.  We have been doing estate planning for over 30 years.  Read more and download your estate planning questionnaire.  After you fill it out, send it to us and we can help you implement a plan that achieves your personal wishes.