Many people are aware the U.S. has a broad and aggressive tax system. However, it can often come as a surprise how quickly the reporting obligations arise and the vast extent of information required. With proper structuring and planning there are options to minimize these tax consequences and reporting obligations.
Proper preimmigration planning can achieve two goals. First, it can help to minimize both income taxes and the estate tax, which is a tax on wealth transfers. This planning must be done in advance of obtaining U.S. status as the options are much fewer once someone is considered a U.S. person for tax purposes. Second, a preimmigration plan can help you protect your assets and make sure if something happens to you the fate of your assets does not have to be decided through litigation in court.
At Hone Maxwell LLP, we understand not only the legal consequences and obligations of immigrating to the U.S., but through our experience we also understand many of the personal and family issues that can arise when planning for a change in U.S. status. This allows us to give balanced advice that achieves the personal goals of the client while also choosing a plan that is strategic for tax and legal purposes.