So, you’re thinking about moving to the U.S., or perhaps you’re seriously considering it after President Trump’s recent announcement of a potential “Gold Card” program. As exciting as this opportunity may be, before you start perfecting your best “How y’all doin’?” or adjusting to American-sized portions, there’s a crucial factor you shouldn’t overlook—your assets.
Many foreigners arrive in the U.S. without realizing that their estate, taxes, and financial affairs may be affected in ways they never expected. The last thing you want is to be caught off guard by unexpected tax bills, complex inheritance laws, or banking restrictions.
Before you pack your bags and apply for U.S. citizenship, here are some key financial and legal steps to take so your transition is smooth and your assets are protected.
Welcome to the Land of Global Taxation (a.k.a. The IRS Sees Everything)
One of the biggest surprises for new U.S. residents? The U.S. taxes worldwide income. That means once you become a U.S. tax resident (which can happen long before you get citizenship), you must report and pay taxes on ALL your income—even from assets, rental properties, and businesses abroad.
What to do before moving:
- Consult a tax professional to understand how your income and investments will be affected.
- Consider restructuring your holdings to minimize tax liabilities.
U.S. Estate Taxes: Are You Leaving an Inheritance… or a Tax Bill?
Unlike many countries, the U.S. imposes estate taxes that can reach 40% on assets over $13.61 million (as of 2024). But here’s the kicker—if you’re a non-resident, your exemption is only $60,000 before estate taxes apply to U.S. assets.
Things to consider before the move:
- Review how U.S. estate taxes will impact your property and investments.
- Consider restructuring ownership of U.S. assets before becoming a tax resident.
- Explore options like trusts or LLCs for estate planning.
Got Foreign Bank Accounts? The IRS Wants to Know
If you plan to keep money abroad, be prepared for reporting requirements such as:
- FBAR (Foreign Bank Account Report): Required if you have $10,000+ in foreign accounts at any time during the year.
- FATCA (Foreign Account Tax Compliance Act): Requires additional disclosures on foreign financial assets.
Failing to comply with these regulations can lead to hefty penalties, so it’s essential to stay on top of reporting requirements.
Think Before You Buy Property in the U.S.
Many new residents jump straight into the real estate market without considering the tax and legal implications.
- Holding property personally vs. through an LLC or trust can affect estate taxes, liability, and inheritance planning.
- If you already own U.S. real estate, consult an expert to determine whether restructuring ownership before residency is beneficial.
Your Home Country’s Laws Still Matter
Tax treaties, dual citizenship rules, and inheritance laws vary from country to country. Some nations allow dual citizenship, while others require you to renounce your original nationality.
Before applying for U.S. citizenship, consult with experts in both countries to ensure you’re making the best long-term decision.
Your Foreign Will & Estate Plan May Be Useless Here
If you already have a will, trust, or power of attorney in your home country, it may not be recognized in the U.S. Laws regarding inheritance, spousal rights, and asset distribution vary significantly.
- Review your estate plan and update it to comply with U.S. laws.
- Consider setting up a revocable living trust to simplify asset transfers and avoid probate.
Final Thoughts: Plan Now, Avoid Problems Later
Moving to the U.S. is exciting, but without proper financial and legal planning, you could face unexpected complications. Reviewing your tax obligations, estate plan, and asset structures before the move will help you avoid unnecessary headaches.
If you’re planning to relocate and want to protect your assets, minimize taxes, and ensure a smooth transition, we’re here to help. Let’s set you up for success—without surprises from Uncle Sam!
