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Katz Baskies & Wolf PLLC is privileged to include among its family of clients not only U.S. individuals and families, but individuals and families who are not residents or citizens of the U.S.
Our goal at Katz Baskies & Wolf PLLC, is to provide our clients with comprehensive estate planning that results in wealth preservation and asset protection. In order to ensure that we provide this service through the use of leading methods and procedures, we not only utilize domestic planning strategies but international planning ones as well. By staying abreast of the changing laws in the United States and abroad, our clients can rest assured they are receiving preeminent legal advice that accomplishes their short and long-term financial goals.
Planning for Non-U.S. Citizens
For non-U.S. citizens considering investing in or moving to the United States, we provide advice and counsel in structuring worldwide assets and effectively transferring wealth through vehicles such as international trusts and foreign business entities. We also consult with tax compliant non-U.S. citizen clients on the privacy benefits under U.S. law, including:
- No public registry of trusts or their beneficiaries, unlike corporations and LLC’s
- S. trust laws are designed for privacy
- Third parties may rely upon the authority of a trustee
- Possible avoidance of U.S. tax reporting requirements
- Possible exemption from international information exchanges, such as FATCA (“Foreign Account Tax Compliance Act”) and CRS (“Common Reporting Standards”).
Planning for U.S. Citizens
For our U.S. citizens, we often discuss the incorporation of international trusts into their domestic estate plans in order to leverage their federal transfer tax exemptions while retaining a discretionary interest in the property transferred to the trust, and, to protect those assets from the claims of U.S. creditors. More specifically, international trusts offer numerous benefits over domestic trusts, including:
- Courts in foreign jurisdictions where an international trust is settled are under no obligation to honor orders and judgments issued by United States courts. Therefore, in order to have an order or judgment enforced in a foreign country, the entire case would need to be litigated once more in a foreign court of the country that has jurisdiction. Even then, there is no guarantee that the claimant will be successful in that court system.
- International trusts present significant impediments to a domestic creditor that attempts to access the trust’s assets, which includes financial, legal, and geographic obstacles, and is why it is not uncommon for domestic creditors to choose not to pursue assets protected in international trusts in foreign countries.
- An international trust is not hampered by the same legal constraints as domestic trusts, such as the Full Faith & Credit Clause of the Constitution and the Bankruptcy Abuse Prevention & Consumer Protection Act of 2005. The Constitutional Full Faith & Credit Clause requires states to honor judgments that are issued in other states. The Bankruptcy Abuse Prevention & Consumer Protection Act of 2005 has provisions that can render certain transfers to trusts fraudulent if they are made with the intention to defraud creditors.
At KBW Our Attorneys Work Hard To Ensure Your Financial Security
As estate planning attorneys, our goal is to provide you with financial security that you can depend on. We accomplish this by employing all legal remedies available to us, both domestic and international. Our experience has shown that by utilizing this multi-faceted approach we are able to reach our clients’ financial goals while remaining compliant with all governing laws. Contact our firm to schedule an appointment with one of our dedicated legal professionals and find out how we are able to put our knowledge to work for you.