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Estate Planning Considerations for Dual Residents

presented by Lorman Education Services
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Estate Planning Considerations for Dual Residents

Workshop Description/Agenda

Learning Objectives
Learning Objectives

Gain an understanding on the key concepts you should be considering when estate planning for a dual resident client including tax issues and will options. In an increasingly global society, the world is shrinking and clients are becoming more mobile. Just last year, over one million foreign nationals obtained green cards. U.S. professionals move overseas for better job opportunities, and disgruntled U.S. taxpayers renounce their U.S. citizenship at an unprecedented rate. Currently, there are an estimated nine million U.S. expatriates living abroad. During the first three months of 2020, more U.S. citizens sought to renounce their U.S. citizenship than during the entirety of 2019. Often, these mobile clients are unaware that they have dual status and become or remain subject to certain U.S. tax obligations. Even those clients who are aware of their dual residency frequently fail to comply with their U.S. tax obligations and end up facing substantial costs associated with their noncompliance. Moreover, estate planning for such mobile clients is important, if not essential. The problem, however, is the complexity of the U.S. tax rules involving international clients. These rules frequently change, and the challenge for domestic advisors is exacerbated by a contrasting variety of rules and legal regimes of the countries in which such clients or their assets are located. Thus, there is an increasing demand for domestic advisors who have the ability to identify dual resident clients, to be aware of such clients U.S. tax obligations, and to design estate plans that factor in all potential issues and that will survive across the border. This topic is intended to serve as guidance for both domestic advisors and dual resident individuals. It will cover the intricacies of the dual residency rules and a number of key nontax and tax factors that must be considered when advising dual resident clients and when designing taxefficient and viable estate plans. This information is also intended to help determine whether a dual resident client is in compliance with applicable U.S. tax obligations.

Determination of Dual Residency Status
ï Dual Residency Overview
ï Income Tax Residency
ñ Green Card Test
ñ Substantial Presence Test
ñ Dual Status Taxpayer
ñ Treaty Tie-Breaker Exception
ï Transfer Tax Residency Equals Domicile
ñ No Precise Definition of Domicile
ñ Subjective Facts and Circumstances Test
ñ Transfer Tax Treaty Resident

Initial Estate Planning Considerations for Dual Residents
ï Main Legal Systems of the World
ñ Overview
ñ Property Located in Another Country
ñ Forced Heirship and Other Default Restrictions
ï Determination of Governing Law
ï Will Options
ñ Recognition of U.S. Wills
ñ U.S. Will
ñ Situs Will
ñ International Will
ï Recognition of U.S. Trusts

Transfer Tax Considerations for Dual Residents
ï Overview
ï Estate Tax Considerations
ñ General Rules
ñ Situs Rules
ñ Surviving Non-U.S. Citizen Spouse; QDOT
ï Gift Tax Considerations
ñ General Rules
ñ Gifts From Dual Residents to NRAs
ñ Gifts From NRAs to Dual Residents; Situs Rules
ñ Non-U.S. Citizen Spouse
ï Transfer Tax Treaties

The Expatriation Regime
ï Overview
ï Definitions
ï The Exit Tax
ï The 2801 Tax

Income Tax Considerations for Dual Residents
ï General Rules
ñ Foreign Tax Credit
ñ Foreign Earned Income Exclusion
ï Income Tax Treaties
ï Community Property Considerations
ï Income Tax Matters Concerning Foreign Assets
ñ Foreign Trusts
ñ Controlled Foreign Corporations (CFCs)
ñ Passive Foreign Investment Companies (PFICs)
ñ Transfers of Appreciated Property to Foreign Entities
ï Selected Reporting Requirements

Anthony F. Vitiello, Esq. with Connell Foley LLP

CLE (Please check the Detailed Credit Information page for states that have already been approved) ,CPE ,Enrolled Agents ,Additional credit may be available upon request.

Who Should Attend

This live webinar is designed for attorneys, estate planners, accountants, CFOs, controllers, business owners and managers, tax managers, financial planners and enrolled agents.

Additional Information

Training Provider: Lorman Education Services

Course Topics: Law Training > Asset Protection/Estate Planning

Training Course Summary: Estate Planning Considerations for Dual Residents