If you are an international individual – with assets, businesses, or family members in more than one country – you may need to consider numerous taxes in your cross-border estate planning.
The main challenge with cross-border estate planning is the complexities and discrepancies between different legal and tax systems around the world.
These differences often create hurdles for individuals who own assets in more than one jurisdiction or for families spread across countries.
The problems with cross-border estate planning
There are several issues that our international clients often face in their cross-border estate planning, including:
- Differences in tax or inheritance laws
- Currency fluctuations
- Complex administration
- Domicile and residency laws
Some of these issues can be fixed directly by consulting an international tax adviser whilst others can only be mitigated against.
Take currency fluctuations, for example. It’s hard to predict the value of currencies six months, a year, or 10 years from now, so it’s almost impossible to prevent their effects on your estate in the long term.
However, it is possible to mitigate against them with things like currency clauses in your Will, muti-currency accounts, and currency hedging.
Tax laws, inheritance laws and domiciliary laws, however, are much easier to manage.
Planning your estate in accordance with international tax laws
We often advise clients on the best way to reduce their tax liabilities when it comes to estate planning, trusts, and Wills.
While we may not be solicitors, we have the expertise to guide you on the best course of action when it comes to keeping as much of your hard-earned cash as possible.
This might be through the efficient use of Double Taxation Agreements (DTAs), the use of exemptions and reliefs, or residency and domicile planning.
For property assets, we can help you restructure your ownership which can significantly reduce your tax liabilities. Owning property jointly, in certain circumstances, or through certain corporate structures, can offer great tax advantages.
Similarly, we can help you plan your pension contributions, life insurance and gifting to help limit the amount of tax you pay.
If you’d like more information on the sorts of tax you pay, ways to mitigate them or you’d like to speak to one of our advisers, please don’t hesitate to get in touch.
Reanda UK is a subsidiary of leading independent accountancy firm Grunberg & Co Limited. Our aim is to help businesses and individuals to navigate the UK’s world-renowned business and tax infrastructure, and to support them with their international ambitions. To find out how we can help you, please contact us.