Holding Title to Assets as Joint Owners…
Holding title to assets as joint owners with rights of survivorship might avoid probate but, among a host of problems it could create, the property could still be tied up in a guardianship if one of the owners becomes incapacitated.
Read More →Fiscal Residency Can Occur Before Residency
Most foreigners know that the nature and duration of their U.S. activities will somehow determine whether or when they will become “Fiscal Residents” and thus taxed on their income both in and outside the U.S. However, most don’t realize that Fiscal Residency can occur well in advance of residency for immigration purposes and fail to develop and execute money-saving tax [...]
Read More →Transfers from One Spouse to Another
Transfers from one spouse to another are normally not subject to estate or gift tax, but only if the other spouse is a U.S. citizen, regardless of how long they have lived in the U.S. Most long term permanent residents don’t realize this. Moreover, some tax and legal advisors unfamiliar with international work never bother to ask about citizenship.
Read More →Estate Tax Exemptions
Don’t let your spouse’s estate tax exemption die with them! No estate tax return is due for estates below the soon to be reduced $5 million tax exemption threshhold. Without filing a return, however, a married couple can lose the benefit of the excess exemption, because it does not automatically carry over to the surviving spouse. And even that will [...]
Read More →Power of Attorney and Incapacity
Up until October 1, you could give someone a Power of Attorney to manage your affairs on the condition that they could not use it unless you lost capacity. Under the new law, such a condition renders the entire document invalid. This condition was so popular that many templates included it by default. Just another trap for the “do it [...]
Read More →30,000 Taxpayers Voluntarily Disclose Offshore Assets
The IRS just reported that the 30,000 taxpayers who voluntarily disclosed their offshore assets have provided a wealth of information on various banks and advisors assisting people with offshore tax evasion. “We have pierced international bank secrecy laws, and we are making a serious dent in offshore tax evasion.” “But just as importantly, we have changed the risk calculus. Americans [...]
Read More →Paying for Grandchildren’s Educational Expenses
Paying for a grandchild’s educational expenses can be a very tax-efficient and asset-protected way to transfer wealth that would otherwise be subject to estate tax, plus an additional generation skipping tax. You can give $65k ($130k if married) to a 529 plan every five years, and you can give an unlimited amount if paid directly to a qualified educational institution. [...]
Read More →Is Your Child a Tax Cheat?
I was quoted in the article “Is your child a tax cheat?” on Wall Street Journal’s MarketWatch. ”One tax specialist in these areas, Eduardo R. Arista, a certified public accountant and attorney in Coral Gables, Fla., said that although he has dealt with several FBAR cases, he has yet to see a case involving a minor child. Arista points out [...]
Read More →Just Started Helping Another Green Card Holder…
Just started helping another green card holder who thought he didn’t have to pay taxes just because he was living abroad. The 2011 tax amnesty expires in just a few months…
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