Estate Planning – Now a Global Concern How can you help clients undertake an estate planning process in the context of the demands of a global commercial environment? In its simplest form, estate planning requires these questions to be asked:

  1. What are the assets that will be the subject of the plan?
  2. Who owns the assets (or in the case of structured arrangements, how are the assets owned)?
  3. Who is intended to benefit from the assets?
  4. Who will supervise implementation of the arrangements?

la casalinga che guadagna 7000 al mese facendo trading In a global context, three additional questions must be asked:

  1. Where are the assets situated?
  2. Where is the intended beneficiary resident?
  3. Is the testator a person whose estate will be subject to tax in another jurisdiction?

option 24 recensioni see url Death duties

here Before the abolition of death duties in Australia, estate planners primarily focused on schemes that enabled assets to pass from one generation to another without the imposition of death duties. Whether those skills will be required in Australia in the future is a matter that we will only know with the passage of time. However, residents of the United States, irrespective of their residence, remain subject to US income taxation and estate tax.

opciones binarias toque US estate tax was an issue (albeit one of many issues) that was raised during the 2016 US election cycle. In simple terms, deceased estates which have a value in excess of US$5 million are subject to duty on 40 per cent of that excess. Individual states may also impose a death or gift duty.

In Australia, we are familiar with general anti-avoidance provisions (which we lovingly refer to as “Part IVA”). There is no equivalent provision in the US. The US also does not have promoter penalty legislation. This means that many estate planners are myopically focused on tax schemes to avoid death duties, rather than the dynamics of the family in question for the long-term estate plan.

Other jurisdictions, particularly in Europe, also impose a death duty in one form or another.

click Attribution rules

Many families have children who have migrated either temporarily or indefinitely to a country that has death duty or stringent attribution rules. Attribution rules apply where the income of an entity (usually a company or discretionary trust) are attributed to a particular individual, irrespective of whether that individual has an actual entitlement to a return from that entity.

In Australia, CFCs are a good example of this concept.

The estate planning for these families needs to be done carefully, so that the overseas individual is only taxed on the entitlement of that individual to income of a testamentary trust, or an existing family trust, and that the whole of the income of any such trust is not attributed to that individual for tax purposes.

It may be necessary to balance the risk of an avoidable tax impost against the certainty that the intended beneficiary will ultimately get the benefit of his or her respective share of the deceased estate, or in the case of existing trusts, the family’s wealth.

source url Overseas property

In a global environment, many clients will have assets that are situated overseas. The conflict of laws between the law in which the person who owned the asset was domiciled at the time of making the will (normally for us this will be Australia, or the relevant state in Australia) (Domicile Law) and the country in which the asset is located (Situs Law), can be quite complex. In the first instance, the applicable estate planning law will be the Situs Law.

However, in many jurisdictions, the Situs Law will require a reference back to the Domicile Law to determine the relevant applicable succession principles. Some jurisdictions may apply a death duty in respect of the assets situated in that country. Some jurisdictions may require the asset to be subject to the succession laws of that country. Some jurisdictions have limited testamentary freedom. In those countries, the law prescribes the basis upon which an asset must be devolved among the family members of the asset owner.

A practical solution to this problem is for a person to make a will that specifically deals only with the assets located in a particular jurisdiction. This means that when it comes time to administer the estate, the foreign jurisdiction is only aware of the assets located in that jurisdiction and (unless the jurisdiction is the US, which taxes on citizenship) any tax that applies will only tax the assets located there.

iq option attivazione account Help your client

In the modern global world, in order to prepare a proper estate plan, the planner needs to be alive to each of these issues that have an international aspect. As a trusted adviser, you need to help your client solve these problems.

Geoff Stein, partner, Brown Wright Stein Lawyers

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