Case Studies

If the child is a U.S. citizen, how can the benefits of property inheritance be amplified?

The following is a case sharing

Mr. Li immigrated to Boston in the United States with his family 30 years ago, and his wife and two children also successfully became American citizens. When the two children grew up, they got married and had their own children. After Mr. Li obtained American citizenship, he was sent to work in Taiwan by his company, and his wife returned to Taiwan with him. After that, the couple lived together in Taiwan. Taiwan is settled.

Mr. Li later founded his own electronics company and went public. He became the company's major shareholder and chairman. Mr. Li's main assets are concentrated in shares of listed companies and real estate in Taiwan. Some of his assets are financial assets and real estate in the United States.

Although Mr. Li gave up his U.S. citizenship when he was in his 60s, he still needs to plan for the inheritance of his assets. However, because his two children are U.S. citizens, he is worried about the liquidity caused by having to bear the inheritance tax of up to 45%. gap.

Therefore, in order to successfully pass on these assets to the next generation, Mr. Li established his own single-family office, entrusted local and American accounting firms and law firms to obtain formal professional advice, and appointed an American trust company. As a trustee, in addition to using trusts for distribution work, we also use some financial structure contracts to entrust the holding company shares that hold the shares of the listed company to the structure company and wrap up the financial assets. Through the financial structure contract, A very high additional liquidity contract was created to ensure that when Mr. Li passes away, the additional assets will be generated because foreigners outside the United States donate to the Foreign Grantor Trust to pay off the inheritance tax payable, causing The beneficiaries are the children of the United States and their next generation, which can ensure the efficiency of inheritance! More importantly, these plans comply with U.S. tax regulations, so the high liquidity generated within the contracts can also enjoy future tax benefits.

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