August 15, 2014
In today’s interconnected, globalized world, individuals can more easily live, work and vacation abroad — providing increased opportunities to meet and marry citizens from other nations.
International marriages may require couples to be more thoughtful about financial planning, particularly around taxes and estate planning, says Heidi Steiger, East Region President of The Private Client Reserve. Otherwise, couples may risk accelerating the payment of taxes that they may have assumed would be deferred.
The first item to consider is whether the non-U.S.citizen spouse will become a U.S. citizen. From atax and estate-planning standpoint, this may be the preferred choice. “If your spouse becomes a citizen, you can make unlimited gifts to him or her without paying taxes. And at your death, you can give them all of your assets without incurring immediate taxes,” says Joel Yudenfreund, Wealth Management Strategist for The Private Client Reserve.
If your spouse opts not to become a citizen, take extra steps to protect him or her and your assets. While U.S. Bank and its representatives don’t provide tax or legal advice, your tax and/or legal advisor can offer advice and information concerning your particular situation.