Cross Border Estate Planning
“By failing to prepare, you are preparing to fail.”
― Benjamin Franklin
While the world becomes a smaller place with extensive business and information networks, it is natural for many Indians to have international business interests and invest wealth offshore. Such overseas interests and movement of family members abroad for education or work has resulted in realities of globally spread families and wealth. These modern-day realities come with their own challenges in the form of multi-jurisdictional legal and tax aspects.
There are countries with drastic differences in laws and in addition to these there are trade and commerce blocks and treaties. Many times, the basis of taxation and application of law could differ. This could mean that an individual might or might not be tax liable in a country based on citizenship, residency or other criteria. Double-taxation and Tax relief provisions add to the complexity of the problem. Besides, Indian Foreign exchange controls may pose a different set of issues to be tackled carefully.
Some important tax and legal aspects to be considered in Cross Border Estate Plans to ensure efficiency are income tax, estate tax, applicable trust laws, family and marriage laws, community laws and exchange control laws in each jurisdiction.
Acquiring Citizenship may mean starting a new innings for many, but unless there is pre-planning and thoughtful consideration of tax aspects done, citizenships of countries like USA or Canada may result in huge and immediate income tax and estate tax outgo.
We help clients rationalise their requirements and plan their citizenship accordingly. While entire process of choosing the country and helping the client get there is managed by us. Adequate pre-planning involved at an early stage ensures unwanted tax surprises are avoided at a later date.
Unless structured with laws of both countries involved, foreign asset acquisition may have a permanent draining impact on one’s estate. We help clients plan asset acquisition with a well-rounded view of different tax and legal considerations.
We provide an integrated solution for legal, tax and citizenship planning for our clients. Our robust network of local attorneys and experts is our strength in Cross Border Estate Planning.