International Tax Estate Planning
International Estate Planning for US - Australians
If You:
…you need very specific estate planning advice.
Your estate could be exposed to Income Tax, Estate and Gift Tax. Additionally, certain States impose Income Tax, Estate Tax, and Inheritance Tax.
Exposure to these taxes can depend on whether you, your spouse, and/or your beneficiaries, are “U.S. Persons”, your domicile, the size of your estate, the value of gifts made during life, what your assets are, how they are structured, where assets are located, and how the U.S.-Australian Tax Treaties may apply to your circumstances.
What may be taxable in one country, may not be taxable in the other, or may be taxable in both countries. It is important therefore to plan ahead, to avoid unfavorable tax outcomes in each jurisdiction, or delays in the administration and finalization of your estate.
Depending on your personal and family circumstances
planning may include a combination of the following:
- Ensuring that you are tax compliant in the U.S. to avoid delays in the administration of your estate and distribution of assets.
- A Will, in either, or both countries (or an “International Will” if appropriate), to avoid intestacy and delays in estate administration.
- Where appropriate, revocable trusts and beneficiary designations.
- Powers of Attorney in both countries: if you hold assets in both countries, you need to plan for incapacity. This is especially important as Australian Powers of Attorney may not always be recognized in local counties in the U.S.
- Medical Directives so that your loved ones know what your wishes are in relation to your care.
- If you have young children and no immediate family in the U.S. you may need to consider appointing a temporary guardian in the U.S. in case you are ever unable to care for them.
- Reviewing and structuring existing assets
- Minimizing your potential U.S. Federal and State estate tax exposure.