CASE STUDY
Stephanie
Stephanie is a retired widow who is in the process of relocating to the US. Her daughter Wendy is a client of GPCS´ and moved to the US under the EB-5 program several years ago
About Stephanie
Stephanie is a retired widow who is in the process of relocating to the US. Her daughter Wendy is a client of GPCS´ and moved to the US under the EB-5 program several years ago. For reasons of security and job opportunities, Stephanie expects her second child to also move to the US.
Stephanie has sufficient assets in her home country and abroad to sustain her lifestyle in the US but to also cover the relocation and education costs of her children and grandchildren.
Goals
- Stephanie´s goal is to become a US citizen and live out her life in the US.
- In the meantime, she would like to assist her grandchildren to become financially independent.
Development of a Relocation Plan, which…
- Includes obtaining the necessary tax advice in her home country, specifically in terms of the consequences of financially emigrating. The advice should highlight whether her non-US assets are held in a way that is detrimental in terms of US ´look-through´ taxes. i.e. non-US compliant Insurance or Endowment products that were previously an efficient means of holding investments; then,
- To open a bank account in the US as well as a non-US financial institution that is comfortable working with US resident clients and who can provide a “home” for her non-US assets.
- Stephanie will have no credit score that is recognised in the US. Therefore, it must be possible to obtain a credit card and funding against an existing portfolio via her new US bank account. After 6 to 12 months she should have a sufficient credit score to apply for a mortgage.
Additional Work May Be Required to…
- Source an appropriate investment/asset manager to manage Stephanie´s investments in the US, as well as those which will remain outside the US, and
- To create a financial plan that includes estate planning and considers the regulatory and tax differences between her home country and the US.
It is vital that anyone seek the appropriate advice before relocating as they could face some severe tax penalties and other costs to become “compliant” or “tax-efficient” after they have changed their residence.