Estate planning can be very tough for US citizens living abroad because they have to deal with two sets of taxes and regulations. Many people try to delay it thinking of a better time to get it done but what’s important is that it should be done properly. For this purpose, you should hire a CPA in order to get it done right.
We have listed some of the essentials for estate planning that you need to know and also why you should hire a CPA to help you with the process. But before we begin, let’s start with the basics.
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What is Estate Planning?
Wills, inheritance, and tax issues come under the bracket of Estate Planning. The US laws limit inheritance tax for expats but the price changes every year.
Many expats usually get done with estate planning or get engaged with it before moving abroad, but many things change once you start living out of the country and this can cause your current estate plans to change.
Inheritance is a complicated matter and it’s not necessary that the laws of inheritance may remain the same in the country you have moved to. Some inheritance laws that are normal in the US may be foul in another country, so when you move across the border, you may not anticipate it but things do change quickly and then similar measures have to be taken to fix them.
Reducing Tax Liability
There are certain ways in which you can reduce your estate tax liability. Some of these ways include marriage, spending down income, and gifting some of the income to family and friends. This takes the leash of tax off of you. Another way to reduce tax liability is to create trust funds which will also help you control where your assets go.
There are several strategies that can help mitigate taxation for US expats. You can get the best solutions for you if you start looking for tax consultants for US expats that can help you out with reducing your tax liability.
Get Help With Estate Planning
Estate planning is quite different for expats living abroad in comparison to the people living in the states. This is why it is advisable to hire a CPA firm that will help you make decisions with the unique circumstances you face.
A CPA helps you in different ways which include tax preparation, estate planning, and foreign bank account reporting. You can get all of these things done easily without having to worry much by hiring a CPA who can guide you in the process and help you save money by reducing taxes in one or another way.
Choose A Consistent Tax CPA
You need to make sure that you choose a tax CPA who has been in the taxing realm for several years in order to make sure he or she knows everything about foreign and domestic taxation and on different grounds as well.