83. Moving to America: Avoid These Costly US Tax Mistakes with Pre-Immigration Planning

For those moving to America, knowing what needs to happen before becoming a US tax resident can save you a lot of money. The opportunity can be enormous, but so can the tax mistakes. From foreign mutual funds that trigger punitive PFIC taxation, to offshore companies that become highly inefficient in the US, to pensions, trusts, and inheritances that create unexpected reporting obligations, many expats arrive without realising how quickly their existing financial setup can become problematic once they enter the US tax system.  Richard Taylor – dual UK/US citizen and Chartered Financial Planner – is joined by David Gershel – international tax attorney and Partner at Berkowitz, Trager & Trager LLC – to discuss why pre-immigration planning is one of the most overlooked but valuable parts of the moving process.  Drawing on real client examples, they explain how structures that work perfectly well abroad can become expensive liabilities in America, why California and other states can create tax problems beyond the federal system, and how failing to plan early can leave expats dealing with costly cleanup work years later.  In this episode of Expat Wealth, Richard and David discuss why foreign investments and pensions often create problems for new US residents, how offshore trusts and companies can trigger unintended tax consequences, what inheritance and reporting traps many expats miss, and why working with experienced US tax help and international wealth professionals before your move can save significant money and stress down the line.  –  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.