How to transfer property after immigrating to the United States?

How to transfer property after immigrating to the United States?

According to a recent survey conducted by China Merchants Bank, about 60% of the "high-net-worth people" in China, that is, people whose investment assets exceed RMB/kloc-0.0 million yuan, are either considering investing in and immigrating to the United States, or have almost completed the formalities of immigrating to the United States.

Despite this, there are still many people who are afraid of the global tax laws in the United States. Many customers who consult EB-5, an American investment immigrant, are also worried that they will bear a lot of tax burden once they get the American green card. In fact, customers don't have to worry, as long as the method is proper, they can avoid taxes reasonably!

Then, after immigrating to the United States, how should we transfer property in order to achieve reasonable tax avoidance!

On the transfer of assets, the American tax law has different tax provisions for three kinds of people, namely American citizens, green card holders and non-resident foreigners. In terms of taxation, the United States is "people-oriented". As long as you are an American citizen or permanent resident, no matter where your property is, whether in China or the United States, no matter where you go, you can't escape the fate of being taxed. Even if a foreigner is not a permanent resident of the United States, if he has state-owned assets in the United States, "Uncle Sam" will first determine whether this person officially lives in the United States. Once the answer is yes, then, if the amount of assets transferred exceeds the exemption amount, these people also need to pay taxes. "Uncle Sam" is a cruel move. You have worked hard all your life to accumulate wealth for China. Just because you got a green card, you can't leave it all to future generations. Finally, I have to pay tribute to "Uncle Sam". Speaking of it, it can't be completely attributed to the bullying of "Uncle Sam". Applying for a green card to become an American citizen is a personal choice. Since the United States has been chosen, it is necessary to pay taxes according to American tax laws.

What are the global assets of foreigners and the transfer of assets in the United States that need to pay US inheritance tax and gift tax? How do Americans make reasonable planning and transfer when faced with real estate problems?

Rational use of annual allowance

According to the tax law, in the year of 20 15, everyone can donate 14000 USD to anyone every year, and no gift tax is required for any property gift below this amount. If a couple has two minor children, each child can get $28,000 a year, and the two children can get $56,000 without paying taxes.

In this way, in 10, the property transferred by parents to their children can reach $560,000, which is not a small sum. If the money is used for investment, the investment income and principal belong to the children's property. At this time, the money earned falls into the pocket of the child, so there is no need to pay the gift tax.

Rational use of gift tax

In the United States, the gift tax means that those who give money pay taxes, and those who receive money don't have to pay taxes. If parents don't have American citizenship or green card status, then their remittances don't need to pay gift tax. However, there are certain regulations on the overseas funds received. If the amount exceeds $6,543,800+,you must fill in the 3520 tax form for declaration, but declaration does not mean paying taxes. Because the declaration system is convenient for the IRS to keep records and know where your money comes from.

Principle of unlimited marriage deduction

American tax law stipulates that the transfer of property between husband and wife is not subject to the restriction of annual tax exemption (but both husband and wife must be American citizens), because American law defines husband and wife as a single economic entity, and there is no restriction on the transfer of property between husband and wife. This unlimited marriage deduction is a preferential policy for American citizens. Since permanent residents are essentially foreigners, "Uncle Sam" will treat them differently. If both husband and wife have green cards and become permanent residents, they can come to the United States unimpeded, but they do not enjoy unlimited marriage deduction. If one of them dies, even if all the property is left to the surviving spouse, if the spouse wants to get the inheritance, he must pay the inheritance tax first, instead of waiting for the inheritance to be passed on to future generations.

American tax laws are very unfavorable for non-American citizens to inherit American citizens' heritage. In marriage, there are two other situations that will have different results on inheritance, depending on whether American citizens leave or inherit. For example, if the husband is an American citizen and the wife immigrates to the United States from the mainland, she only has a green card. When the husband dies, the wife does not enjoy unlimited marriage deduction. A wife from the mainland can inherit the inheritance left by her husband, but only if the wife from the mainland pays the inheritance tax immediately after deducting the inheritance allowance, otherwise "Uncle Sam" will not let the green card holder inherit any inheritance.

Buy life insurance

The ultimate goal of buying insurance for oneself, spouse and children is to make the property continue smoothly. For example, many people may not leave their children more than one million dollars in their lifetime. If you buy a life insurance policy with a coverage of $1 million, it is equivalent to leaving a child with $1 million in cash. And the beneficiaries of life insurance claims do not have to pay income tax or inheritance tax.

With the property planning of China investors, many people have realized the benefits of overseas insurance.

Set up a family trust

There are many kinds of trusts, which can be basically divided into revocable and irrevocable types. The former are living trust and pension trust. The latter includes life insurance trust and dynasty trust.

There are two points about trust that must be understood: first, revocable trust has neither much tax saving function nor asset protection function. The reason is actually very simple, because it can be revoked at any time.

Second, the function of real estate planning is an irrevocable trust, but the existing property or future property (such as life insurance) legally invested does not belong to you, and you have no right to control it, let alone the income. If you are really worried about becoming a defendant and that creditors will get their hands on your property in the future, then set up an irrevocable trust, put your unnecessary property in it and indicate that your children are beneficiaries. This has two advantages. First, the real estate is transferred at today's value, including the appreciation part, which will not be counted as your inheritance in the future, so there is no inheritance tax. Second, because the property no longer belongs to you, if the defendant, others can't get the property in the trust.

There was once a client who set up an irrevocable trust a few years ago and put part of his property in the trust. The beneficiary is his daughter. Later, he was sentenced to prison, and his company, real estate and bank account were confiscated, but the assets under the trust were safe and sound, ensuring the children's living expenses in the future.

Finally, American tax experts suggest that investors should choose according to family characteristics and personal preferences when looking for or participating in property planning. Only by taking the initiative in property planning can they continue their wealth better.