Are you married to a non-US citizen? Make sure to protect your wealth! Estate taxes can cost you millions if you don’t plan carefully.
What can you do about it?
- Give lots of gifts when you’re alive! Discover how gifting to your spouse and children during your lifetime can help mitigate estate tax burdens
- Learn about the benefits of setting up a QDOT (Qualified Domestic Trust) and how it can defer estate tax, providing an income stream to your non-American spouse
- Understand the importance of discussing your estate plan with professionals, and ensuring clarity to avoid potential legal disputes in the future
The insights shared in this episode could save you millions of dollars in estate tax (of course, that depends how much money you have)! Remember, The Goldstein On Gelt Show and its host, Douglas Goldstein, are not tax advisors. Consult with your own tax professionals before making any changes.
Are you an American married to a non-U.S. citizen? If so, understanding the complexities of cross-border financial planning could save you and your heirs millions of dollars in estate tax (depending on how much money you have).
When it comes to financial planning for cross-border families, especially those with substantial assets, it’s crucial to plan ahead of time how the family wealth will be passed on. One of the first things to consider is your estate plan. Determine how you want your assets to be distributed in the event of your death, whether to your non-resident alien (NRA) spouse, your kids, or to charity.
For American couples, leaving the entire estate to the second American spouse comes with no estate tax. However, if you’re married to a non-resident alien (a non-U.S. citizen), there are tax considerations to address during your lifetime and potential estate tax implications afterward. To mitigate these tax payments, gifting assets to your spouse up to the allowable limit during your lifetime, and planning with a tax professional and financial advisor how to pass your money to your kids, can help to lower the estate tax.
It’s essential to be mindful of the potential tax implications for your non-resident alien spouse and ensure they understand the tax obligations they may face in the event of your passing, particularly if they will inherit and hold assets in the U.S. Seeking the guidance of a cross-border financial advisor who can help structure your portfolio in a fashion that will minimize the estate tax will greatly help your spouse.
In other cases, the use of a qualified domestic trust (QDOT) may be considered as a means of deferring estate tax in the case of the American spouse passing. Collaborating with a legal professional to set up a QDOT to match your family situation.
When planning intergenerational transfers, balancing the financial security of your spouse and the desire to help your children, while handling taxes, is essential. Working with professionals who specialize in building tailored financial plans, can help you find the balance between all parties in the family.
Remember, proactive and comprehensive planning could be the key to protecting your wealth and ensuring your family’s financial well-being across generations.
The Goldstein On Gelt Show and its host, Douglas Goldstein, are not tax advisors. Consult with your own tax professionals before making any changes.
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Watch Avoiding Costly Mistakes: Planning for U.S. Estate Tax When Married to Non-Americans on YouTube.
