75. The Green Card Exit Guide: How to Avoid Surprise Taxes When Moving Away From America

Failing to formally surrender a green card can have serious consequences, including triggering expatriation rules, a potential exit tax, and even long-term inheritance tax implications for US heirs. While most people know that renouncing US citizenship can lead to an exit tax, far fewer green card holders realize that many of the same rules can apply to them. Simply leaving the United States does not end your US tax residency, but too many assume that moving abroad automatically closes the chapter.    Richard Taylor – dual UK/US citizen and Chartered Financial Planner – is joined by Debra Rudd, Certified Public Accountant at Hodgen Law PC, to unpack the lesser-known tax landmines facing green card holders who relocate overseas. They emphasize that approaching Form I-407 and your departure from the US as a planned, coordinated strategy rather than a last-minute border formality can make all the difference between a smooth transition and a sudden exit tax bill with lasting consequences.    In this episode of Expat Wealth, Richard and Debra discuss:     Why holding a green card for as little as six years can classify you as a “long-term resident” and potentially a covered expatriate.     The three tests that determine whether an expatriating individual (including long-term green card holders) becomes a covered expatriate.     How failing to properly surrender your green card, or signing Form I-407 without planning, can unexpectedly trigger exit tax and future inheritance tax exposure for your US-based children.     How large language models (LLMs) can help expats and prospective expats decode complex tax language, empowering them to ask better, more informed questions of their advisers.     --    Expat Wealth is supported by Plan First Wealth. Plan First Wealth is a Registered Investment Advisor serving fellow expatriates and immigrants living across the US on matters such as retirement planning, investment management, tax planning and non-US asset management.    https://planfirstwealth.com/    --    Expat Wealth is affiliated with Plan First Wealth LLC, an SEC registered investment advisor. The views and opinions expressed in this program are those of the speakers and do not necessarily reflect the views or positions of Plan First Wealth.      Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Plan First Wealth does not provide any tax and/or legal advice and strongly recommends that listeners seek their own advice in these areas.