HANDS-ON ADVICEPlanning Strategies for multinational citizens

Agenda Situs of personal,

real property tangible and intangible assets

Probate, court and practical issues with foreign fiduciaries

Requisite planning documents

Marshaling international assets

Immigrant investor visas- a way to “purchase” a green card

U.S. trusts as asset protection vehicles

Property and AssetsSitus determination for

Personal Property

Includes real estate, timber, mineral rights, and sufficiently long leasehold interests.

Excludes works of art on exhibit, any personal property accompany the non-resident.Does not hold for items in a safe deposit box

Tangible/Intangible

Stock issued by a U.S. corporation is property within the U.S.

Securities held in U.S. brokerage account maintain U.S. situs.Physical location of certificates is irrelevant

Certain assets will not be characterized as having US situs.For example Life Insurance proceeds

Conversion to IntangibleOwnership by an LLC of LP may be deemed, through membership interest, to be non-U.S. situs property

Situs is not dependent on the underlying assets in the LLC or LP

Conversely, situs for a beneficial interest in a trust is determined by the situs of the underlying assets.

A general power of appointment over trust assets sitused in the US may be considered a beneficial interest sitused in the U.S.

Foreign FiduciariesProbate, Court and Practical issues

Guardianship Name local

temporary guardians Children without a

passport require court authorized third party to apply

Airline regulations for minor children

Visa application hurdles and delays

Some states will not allow sole foreign guardians

Foreign testamentary guardians signing at an embassy

TRAP FOR THE UNWARYIf a minor child moves abroad

Children in the U.S. with a green card are only permitted to leave the country for a period of one year before needing to reapply for re-entry to the U.S.

Estate Planning Documents

For non-resident/non-citizen

Foreign and Domestic Wills Wills to direct flow of assets in the

jurisdiction where property is located Civil Law Jurisdiction v. Common Law Protection of children’s interests and

forced heirship Gifting “claw back” of as many as 10

years

Necessary Documents

Create a Will that specifically does not reverse a will executed in a foreign jurisdiction to govern ONLY U.S. property

Health care Proxy, Durable Power of Attorney, HIPAA Release, Living Will

Marshaling International Assets

Specifically non-tax

Probate and Flow of Assets If a foreign (or U.S.) asset is not owned

in trust, there may be requirements for ancillary probate

A revocable living trust may be able to direct foreign beneficiary designation upon account holder’s passing

IRS Form 3520

If assets to a U.S. beneficiary were received through foreign gifts and inheritances or distributions from foreign trusts are in aggregate over $100,000, even if no tax is due, must file Form 3520

Immigrant Investor Visa

Ways to “purchase” a green card

To qualify a foreign national must invest, without borrowing, a minimum of $1,000,000 in a qualifying commercial

enterprise$500,000 in an economically depressed

area, marked by high unemployment

Immigration Reform

7.1% of all employment based visas Must create 10 full time jobs for U.S.

citizens within 2 years Senate immigration reform bill would

increase number of investor visas from 10,000 to 14,000

U.S. TrustsAsset protection in

Qualifications

Must be a U.S. grantor trust Settlor may not maintain a power of

appointment Only settlor and spouse can be

beneficiaries during settlor’s lifetimeSame-sex couples rulings still forthcoming

and quickly changing

QUESTIONS