At JTC we have gained many years’ experience in helping wealthy families and their businesses with their LatAm/US cross-border needs. These needs are constantly changing with the evolving regulatory landscape. Some of the most common issues at present include:
- US tax issues – US Estate Tax
- US regulatory issues – US reporting
- Asset protection
- Succession planning
Here we have included some key points for clients to consider:
US tax issues – US Estate Tax
A person who is neither a citizen nor a domiciliary of the United States is subject to United States federal estate tax, only with regards to testamentary transfers of assets which are situated within the United States.
US situated assets include American real estate, tangible personal property and securities of US companies.
Non-resident aliens (NRAs) are limited to an estate tax exemption of $60,000 USD. Above the exemption, the tax rate would be up to 40%.
Proper planning may reduce the tax exposure applicable to NRAs with property in the US.
US Regulatory Issues – Real Estate owned by LLCs (form 5472)
In any business that has at least 25% foreign ownership, shareholders or partners must disclose all of their transactions.
The main purpose of Form 5472 is to avoid income tax evasion on transactions that take place between US companies and any foreign participants.
It is often beneficial for wealthy families to learn about estate and trust planning so that they can make informed decisions and prepare for the future.
With more than 30 years of experience working with most of the top Latin American law and accountancy firms, we can provide guidance on the planning strategies to preserve a family’s wealth through generations.
Asset protection – unique trust statutes for asset protection trusts
South Dakota is considered to have top-rated asset protection statutes. It has one of the shortest fraudulent conveyance periods (two years) and a “clear and convincing” burden of proof requirement, along with privacy statutes. In addition, South Dakota has limited powers of appointment and discretionary distributions from trust statutes that are not considered property interests. This makes South Dakota one of the most favorable jurisdictions for asset protection.
To find out how JTC’s team can help you or your clients, please get in touch.