Have You Considered Expatriation as A Solution to Your Asset Protection Problems
In order to enjoy all of the perks of permanent residence and citizenship, one must reimburse the country. In other words, if you want to stay, you have to pay. But is there another option? Some say yes expatriation.The well know phrase, "nothing is certain except for death and taxes", is often on the tongues of those Americans who are fed up with shelling out huge quantities of their hard earned cash to their homeland. In the great land of America taxes follow citizens around like a starving animal. Unfortunately, there is no escape from this doom while living as a US citizen in America. In order to enjoy all of the perks of permanent residence and citizenship, one must reimburse the country. In other words, if you want to stay, you have to pay. But is there another option? Some say yes: expatriation.
The term sounds so evil, as if the citizen is denouncing all that the country stands for. However, in this context, it just means leaving the country and finding a new one to call home. The concept sounds simple, but it requires intense thought and consideration because it calls for permanence. Many have gone the route of expatriation, including John Dorrance III, heir to the Campbell''s soup throne.
Expatriates move to another country, in Dorrance''s case, Ireland, to start anew and be void of US federal income and estate taxes. For all, it is a profitable move saving them many millions of dollars. However, it is a trying decision to make for some leaving behind extended family and friends in the states.
There are a few requirements that enable the expatriate freedom from US taxes. One is that a spouse who shares property and/or assets must go along for the ride. A spouse who remains a US citizen will incur US taxes on shared property, defeating the purpose. Another requirement is that all income must be foreign, i.e., not from US soil. Once the spouse is on board, the destination is all that''s left.
Some may choose a destination close to their heart, such as the homeland of ancestors. Others may go purely on fantasy and plant themselves on a beautiful island to bask in the sun. Others still may be unsure of where to dig in their new roots. For this reason, the decision of expatriation takes time, concern, and consideration.
After choosing your destination, you must ensure that they will welcome you with open arms. Countries differ on their citizenship policy ranging from quick payment to time accrued in order to obtain citizenship. These details must be ironed out before the process of expatriation begins because necessary steps must be taken to make certain that citizenship will be available upon arrival to your new home.
With careful consideration and much thought out planning, expatriation can be a new start for some. Some will begin the process with financial aspects in mind and end up with a new and exciting place to call home an some additional income on top of it.