Foreign National Insurance Planning

Life insurance is a crucial tool that provides liquidity, mitigation of risk, reduction in tax liability, and even tax deferred growth. 

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Establish a clear plan to protect your global assets.

It’s self-evident that everyone should have a comprehensive estate plan. High net worth (HNW) foreign nationals are no different — they want to ensure that their families are protected and their wealth is preserved. Also, wealthy foreign nationals who own businesses may need a succession plan for business continuation.

Complicated rules, both in the U.S. and internationally, make planning a necessity for this type of global client. Considering just the U.S. tax system alone, the HNW foreign national client (depending on their U.S. residency status) can face significant U.S. transfer taxes with a much lower exemption than U.S. citizens — or perhaps even be taxed in the U.S. on worldwide property.

The good news is that you have options. We can provide you with the tools to protect your investments and other assets.

Foreign National Insurance Planning

Globalization has made it increasingly common for people who are not U.S. citizens to have significant financial, business, and family connections. According to United States federal tax rules, these individuals may have unique estate and tax planning needs.

Whether you are a: 

  • foreign national living in the United States or planning to immigrate to the United States; or 
  • a foreign national who owns a business, real estate, or other assets that are in the U.S.; or  
  • if married, when one or both of you are not U.S. citizens and intend to transfer U.S. property to one another,

A federal estate tax of up to 40% may apply to your U.S. assets with a minimal exemption available. Identifying these circumstances and planning for them is possible, and life insurance may provide one solution to the puzzle. Foreign nationals may benefit from life insurance by securing death benefits, obtaining tax benefits over the lifetime of their policy, and having certainty in their estate planning.