Insights
Specialist, multi-jurisdictional tax expertise for US clients
Two minutes with David Elwell, Director – Family Office US
Our international clients tend to fall into one of three categories. First, we have non-US clients who want to invest in the US – often into private equity or real estate. This is an area where we have seen significant growth over the past year.
The second group is made up of non-US clients looking to establish or restructure tax strategies to benefit their US family members. Making distributions from a foreign trust to a US beneficiary, for example, is subject to punitive taxation without the appropriate structuring.
Thirdly, we work with many clients moving to the US, which often requires the restructuring of offshore structures and tax planning. A year-to-18 months is optimal for pre-immigration planning for the typical wealthy international family but we can certainly do it faster if required.
Wealthy Americans tend to be less globally mobile than their counterparts around the world. Although many Americans travel widely and may own residences abroad, outbound planning is far less common than inbound planning for us. Our clients often have family, community and business ties that keep them from moving overseas. In addition, the US is one of very few nations that taxes its citizens on a worldwide basis, regardless of where they live, so tax reduction is not a motivating factor
Clients who spend prolonged periods abroad must be mindful not to accidently pick up residency. Without proper planning, they could be liable for double taxation. Foreign unit trusts, mutual funds and common investments are subject to aggressive taxation for Americans. There are also stringent reporting and filing requirements that apply to those with bank accounts and financial assets in other countries.
Many of our US clients have a formalised approach to philanthropy. We often work with families to assist them in setting up private foundations or other forms of planned charitable giving. Not only are they a great way to support the causes close to their hearts, but they are also increasingly seen as a great way to involve the next generations, giving a tangible purpose to their wealth.
We have a broad international footprint. Our US clients like the fact that we can provide specialist multi-jurisdictional tax advice – whether that’s UK, Swiss or South African – all under one tent. We are not limited to the US and don’t have to rely only on third parties to supplement our advice.
David is a Director in our Family Office Division in the United States. He assists individuals and families with United States tax planning, closely-held business succession planning, and planned charitable giving. David is a practicing attorney, focusing on U.S and international tax planning, administration and compliance.
Find out more about Stonehage Fleming's Legal & Tax Advisory offering