Is there a way to successfully manage your finances while living abroad without leaving money on the table?
Historically, the vast majority of U.S. expatriates have been limited to working with personal financial planning consultants who lack certain knowledge when it comes to managing their finances while living abroad. Unfortunately, those relationships have proven ineffective and in many cases – quite costly.
We understand the financial challenges and opportunities posed by living abroad. We help American expatriates find solutions to these complexities to avoid pitfalls and make the right choices. Our goal is to make our clients’ time abroad a catapult to a secure financial future as well as the adventure of a lifetime.
What is different about cross-border planning?
Analyzing current investment
Cross-border planning analyzes your current investment and tax strategy as an American living abroad, considering two or more countries.
Optimization U.S. estate taxes
Helps you optimize U.S. state and federal income taxes before moving or living abroad by considering two or more tax systems.
Analyzing host country taxes
Analyzes host country taxes and treaties to avoid expensive financial mistakes in the U.S. and the host country.
Analyzing domestic estate taxes
Cross-border planning analyzes deficiencies in domestic estate planning, considering two or more legal systems.
On top of what regular financial plans offer, we also include:
Customized investment strategies
Customized investment strategies and advice unique to your situation and host country
A customized, high-level overview
A customized, high-level overview of the host country’s tax system and its relevant treaties with the U.S.
Recommendations about your investment accounts
Recommendations for what to do with your investment accounts when you no longer live in the U.S.
A customized report of U.S. tax implications while living abroad
Tax recommendations for your particular situation
Referrals to qualified professionals in specialty areas
Our personal financial planning process
|1Access to Certified Financial Planner™ advisors||2 Access to a highly educated team with degrees ranging from Master of Finance to Ph.D. in economics||3Access to federal IRS Enrolled Agents to state-specific Certified Public Accountants|
|4Access to a multilingual team fluent in English, Spanish, Italian, Portuguese, and French||5A team that specializes in cross-border tax and investment planning||6Cross-border financial and tax planning specialist|
|7Experienced team who has lived in Europe, North and South America and understands what it is like being an expat||8Access to an experienced network of tax, legal, immigration, and financial professionals across the world||9Experience in the financial services Industry since 2007|
issues we commonly
International tax planning
Estate planning for U.S. citizens living abroad
Expatriate insurance for U.S. citizens
Currency risk management
Compliance with U.S. tax laws including FATCA, FBAR and PFIC rules
Tax and estate planning issues related to foreign spouses and multinational families
Use of U.S. and non-U.S. pension plans while working abroad
Retirement abroad planning
Download your free personal financial guide to living and retiring in Spain
We can help you solve some
of the most common needs
Tax planning strategies
Credit card selection
Rent or buy decisions
Cash flow planning
Estate planning strategies
Behavioral financial coaching
Five key cross-border wealth management questions to answer before moving abroad
Strategies and investments that worked well in the U.S. may not work after you move. For example, U.S. mutual funds cannot be sold outside the U.S. Under its MIFID II regulations, the European Union will generally not allow EU residents (whether they are EU citizens or not) to buy U.S.-based investment funds unless they are working with a U.S. investment advisor. At the same time, U.S. citizens should also avoid buying non-U.S. investment funds that will be deemed tac-toxic PFICs (Passive Foreign Investment Companies) by the IRS.
Expat Financial Planning offers highly specialized, easy-to-understand, comprehensive financial planning solutions accessible for most expats. Expats will avoid expensive financial mistakes and save time and money when working with us.
Each country has its own unique tax laws. How your new country of residence will tax your U.S. investment and retirement accounts may be quite different than how the IRS taxes those accounts. For example, Roth IRAs are a great way to save for retirement and avoid future taxation in the U.S., but the unique tax-free nature of Roth accounts is not recognized in many countries, such as Germany, Italy, and Japan. On the other hand, the UK and France fully recognize the tax-free nature of Roth accounts under the terms of their double taxation treaties with the U.S. Still other countries, including the Netherlands and Denmark, allow you to take tax-free withdrawals, but assess an annual tax on the Roth account balance.
If you are moving overseas for the long term, you will want to break state residency to avoid paying state income taxes. To ensure you do not get a surprise state tax bill, you will need to take definitive actions – sell property, close or move bank accounts, drop vehicle registration, etc. You will likely also have to file a final part-year or non-resident state tax return and possibly make a declaration to the state tax authority to formally cut ties.
Estate planning is a key component of cross-border wealth management. Just as every country has its own unique tax laws, every country establishes its own unique set of estate and inheritance laws and probate procedures. Even a simple will may fail to distribute your assets as you wish if its stipulations conflict with your new country’s succession laws. Probate tools such as revocable trusts are designed for tax and legal efficiency in the U.S. but will not be effective in many other countries. Even worse, they may create unanticipated and punitive complications in those countries. For example, many countries treat inheritance via a trust structure as coming from a third party and therefore subject it to a higher tax rate than if it came directly from a relative. Another potential risk is that your new country completely ignores your trust and hence, your wishes. Even the UK – a country with a long tradition of using trusts – applies punitive taxes to trusts depending on how they are structured. Much of the world has strict forced heirship rules and high estate or inheritance tax rates. Before you leave the U.S., ensure that your estate plan does not make an already difficult situation even worse for your loved ones. These five questions are simply the tip of the iceberg, but they are important considerations as you start your new adventure off on the right foot.