Income and Estate Planning for the Inbound and Outbound Resident 2013

Income and Estate Planning for the Inbound and Outbound Resident 2013

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  Joel H. Paget Ryan,Swanson & Cleveland, PLLC February 13, 2013 Income and Estate Planning for the Inbound and Outbound Resident
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Today’s Discussion  Questions to Ask Before Coming to the U.S.  The Difference Between a Resident for Immigration Purposes and Tax Purposes  Income & Estate Taxes  Pre-Arrival Tax Planning  Issues When There is a Couple with Different Status  Leaving & Returning to the U.S.  Estate Planning  Questions & Answers 2
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Questions to Ask Before Coming to the United States  What is your immigration status?  How long will you be in the United States?  What will you be doing in the United States? 3
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Questions to Ask Before Coming to the United States (cont.)  Are you a permanent resident/citizen of Sweden?  Do you have assets and income outside of the United States?  Do you want to pay income tax/social security tax to the United States?  Do you want your world-wide assets taxed in the United States? 4
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC The Difference Between a Resident for Immigration Purposes and Tax Purposes Immigration  No status  Non-immigrant  Permanent resident  Citizen 5
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Income Tax U.S. Resident for Tax Purposes  Permanent resident/citizen  Substantial presence test  Sweden-U.S. Income Tax Treaty  Students 6
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Estate Tax  Domicile  U.S. Sited Assets  Sweden-U.S. Estate/Gift Tax Treaty 7
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Pre-Arrival Tax Planning World-Wide Wealth  Exit Tax World-Wide Income  U.S. Income  Sweden-U.S. Income Tax Treaty – Independent Personal Services – Dependent Personal Services Less than 183 days/Foreign Payor/No Charge Back to U.S. Establishment  Fixed, Determinable, Annual & Periodic Income (FDAP) 8
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Issues When There is a Couple with Different Status World-Wide Wealth  Qualified Domestic Trust World-Wide Income  Married filing separately or elect to be treated as U.S. tax resident  Individual Taxpayer Identification Number (ITIN)  Foreign bank accounts TDF 90-22.1  Foreign Bank and Financial Accounts (FBAR) – Form 8938  Lawful Permanent Resident (LPR) should not claim foreign residency on Form 8233 9
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Estate Planning  Last Wills vs. Living Trusts  Durable Powers of Attorney  Health Care Directives  Guardianship of minor children 10
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Leaving the United States  Income  Sailing Permit – Form 2063  Wealth  World-wide unless renounced at U.S. Consulate and accepted by Department of State; or LPR abandons status after 8 years – $151,000 average income tax for 5 years; or $2 million net worth 11
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Leaving the United States (cont.)  Wealth (cont.)  Exit tax – Internal Revenue Code §877A U.S. Citizens Renouncing Citizenship – $651,000 exemption on gains – U.S. citizen or LPR who receives inheritance/gift from expatriate pays highest rate – Dual citizens – 10/15 years as a non-resident of the U.S. – LPR may unintentionally abandon LPR by being absent from U.S. 12
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  Income and EstatePlanning for the Inbound and Outbound Resident ©2013 by Ryan, Swanson & Cleveland, PLLC Returning to the United States  After abandonment of permanent residency status  After renouncing U.S. citizenship 13
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  Joel H. Paget Ryan,Swanson & Cleveland, PLLC 1201 Third Avenue, Suite 3400 Seattle, Washington 98101-3034 206.654.2215 (direct) [email protected] Thank you! Questions?