International Individuals & Families
Cross-border wealth planning for global families seeking U.S. investment access, pre-immigration optimization, or efficient structures for transitioning foreign capital into the American financial ecosystem.
- ›Pre-immigration planning before green card
- ›Foreign Grantor Trusts transitioning status
- ›NRAs investing in U.S. private markets
- ›Global families with U.S.-based children
- ›Entrepreneurs relocating to the United States
- ›Wealth protection from home country instability
The Pre-Immigration Planning Window
The period immediately before U.S. tax residency begins is the single most valuable planning opportunity for international families. Strategies available during this window become unavailable—or significantly less effective—once U.S. residency commences.
Unlimited Gifting Window
Before establishing U.S. tax residency, transfers to irrevocable trusts and certain entities can often be completed without triggering U.S. gift tax—a window that closes permanently upon immigration.
Step-Up in Basis
Assets held before U.S. tax residency may qualify for a fresh-start step-up in cost basis, dramatically reducing capital gains exposure on future dispositions within U.S.-compliant structures.
Trust Structure Selection
The decision to establish a foreign vs. domestic trust, its grantor status, and beneficiary structure must be finalized before U.S. residency begins—restructuring after residency triggers punitive tax consequences.
The International Wealth Challenge
Minimal NRA Estate Tax Exemption
Non-Resident Aliens have only a $60,000 U.S. estate tax exemption vs. $15M for citizens and residents (permanent)—creating substantial exposure for foreign nationals with U.S. situs assets.
FIRPTA Withholding
15% withholding on dispositions of U.S. real property interests by foreign nationals creates significant friction for international investors seeking U.S. real estate exposure.
Trust Status Transitions
Foreign Grantor Trusts converting to Non-Grantor status upon immigration trigger throwback tax issues and require careful advance planning to avoid punitive tax consequences.
PFIC & CFC Reporting
Foreign investment structures create complex U.S. reporting obligations with punitive tax regimes—including mark-to-market elections and excess distribution rules under PFIC and Subpart F income under CFC rules.
Pre-Immigration Timing
The window before U.S. tax residency begins is the most critical—and most time-sensitive—planning period. Structures established after residency begins lose key tax benefits.
Home Country Instability
Political risk, currency devaluation, or capital controls in the home country create urgency for international wealth diversification and U.S.-based asset protection strategies.
International Tax Framework
Foreign Investment in Real Property Tax Act
15% withholding applies to NRA dispositions of U.S. real property interests. Insurance-based structures provide compliant real estate exposure while eliminating FIRPTA withholding friction.
Effectively Connected Income
U.S.-source income attributable to a U.S. trade or business is taxed at graduated U.S. income tax rates rather than the standard 30% flat NRA withholding rate.
Accumulation Distribution Rules
Undistributed net income held in foreign non-grantor trusts is subject to a punitive interest charge upon eventual distribution—making proactive trust transition planning critical before immigration.
Substantial Presence Test
The 183-day weighted formula that triggers U.S. tax resident status. Once satisfied, worldwide income becomes subject to U.S. taxation—making the pre-residency planning window time-critical.
Policy Domicile Considerations
U.S. Domiciled Policy
Offshore Carrier, U.S. Contract
Purely Offshore Structure
Key Structures for International Families
Foreign Grantor Trust (FGT)
Unlimited transfers without gift tax, income accumulation benefits, and maximum flexibility before U.S. tax residency commences.
FGT to Non-Grantor Trust Transition
Addresses throwback tax and ECI concerns during trust status conversion following the establishment of U.S. tax residency.
International ILIT
Removes assets from taxable estates, facilitates insurance-based wealth transfer, and provides efficient cross-border death benefit delivery.
Insurance-Based Investment Access
Provides private market exposure within a compliant structure that avoids FIRPTA, minimizes U.S. estate tax exposure, and simplifies reporting.
Strategic Results
U.S. Market Access
Compliant exposure to American private markets
Jurisdictional Diversification
Strategic use of multiple legal systems
Estate Tax Efficiency
Structures that minimize U.S. estate tax exposure
Privacy Protection
Confidential ownership structures
Tax-Efficient Growth
Deferred compounding within compliant wrappers
Multi-Generational Transfer
Cross-border dynasty and legacy structures
Liquidity Access
Policy loans and withdrawals without repatriation friction
Simplified Compliance
Consolidated reporting minimizes cross-border obligations
Cross-Border Planning for Your Family
International wealth planning requires specialized expertise at the intersection of U.S. and foreign tax law. A confidential conversation can help determine the optimal approach for your family's unique circumstances.