Even though it might seem overwhelming and confusing, there are six key steps you can take to have a solid estate plan in place before you exit the U.S. Here’s what to do when you’re planning to leave.
Review Your Estate Plan in Full
You’ll become subject to local laws about estates when you establish residency somewhere new, but you’ll still fall under the guidance of U.S. tax laws.
Understand Residence and Domicile Rules
Just because a document works in one country doesn’t guarantee the same in your new country. Make sure you get insight from your estate planning attorney when it comes to trusts.
Be Aware of Double Taxes
Estate taxes could be claimed by multiple countries if you have connections to more than one nation. You need to get specialized tax attorney help in this regard to determine if there’s another option.
Think Twice About Foreign Life Insurance
It can be difficult, if not impossible, to get life insurance from a U.S.-based company while you’re living in another country. Your foreign policy also might not comply with U.S. rules, so read all of the fine print.
Determine Where “Common Law” Versus “Forced Heirship” Applies
In the U.S. and the U.K., you’ve got common law principles to help you determine where your estate assets will go, but other countries might require you to distribute them in a different way. Get professional advice to determine what situation applies to you. Need help planning ahead? Contact us at (601) 925-9797.