Yes, absolutely, proactively addressing future global mobility and potential changes in tax residency is a critical component of comprehensive estate planning, and something Steve Bliss, an Estate Planning Attorney in Wildomar, routinely assists clients with.
What happens if I move to a different state?
Often people assume their estate plan is “done” once signed, but that’s a misconception. A significant life change like moving to a different state—or even spending extended periods abroad—can have substantial implications for your estate plan. Each state has its own unique laws regarding probate, estate taxes, and trust administration. For example, California has a relatively high estate tax exemption (currently mirroring the federal exemption of $13.61 million in 2024), but a state like Washington has no state estate tax at all. If you move to a state with different rules, your existing plan might not be optimized for the new tax landscape or could even be invalid. It’s estimated that over 38% of Americans will relocate at least once in their lifetime, making this a very real concern for many.
How does international travel impact my taxes?
Global mobility introduces a layer of complexity regarding tax residency. The IRS uses a “substantial presence test” – generally, being present in the US for 183 days or more during a calendar year – but it’s not the only factor. Even if you don’t meet the substantial presence test, the IRS might consider you a US tax resident if you have a US home, close family ties here, or a US driver’s license. Tax treaties between the US and other countries can help avoid double taxation, but understanding these treaties requires expert legal advice. “Failure to properly address tax residency can lead to significant penalties and legal complications,” Steve Bliss often tells his clients. A recent study showed that approximately 15% of Americans report having income from sources outside the United States, highlighting the increasing need for international tax planning.
What about the foreign account tax compliance act (FATCA)?
The Foreign Account Tax Compliance Act (FATCA) is crucial for individuals with assets held outside the US. FATCA requires foreign financial institutions to report information about accounts held by US taxpayers to the IRS. If you don’t comply with FATCA reporting requirements—typically through Form 8938—you could face substantial penalties, potentially reaching 10% of the account balance. Furthermore, non-compliance can also lead to criminal charges in severe cases. I once had a client, Eleanor, a retired teacher who spent several months each year in Italy. She had a small savings account there, forgotten from a previous trip. Years later, she received a notice from the IRS regarding FATCA and was hit with a hefty penalty. It wasn’t the amount of money that bothered her so much as the stress and anxiety of dealing with the IRS.
Can a trust protect my assets from foreign creditors?
Properly structured trusts can provide a degree of asset protection, even from foreign creditors. However, the effectiveness depends on the type of trust and the laws of the relevant jurisdictions. Revocable trusts generally don’t offer significant asset protection, as you retain control over the assets. Irrevocable trusts, on the other hand, can potentially shield assets from creditors, but they require relinquishing control. I recall another client, Mark, a successful entrepreneur with business interests in several countries. He was concerned about potential lawsuits related to his international ventures. We established an irrevocable trust, funded with a portion of his assets, and carefully structured it to comply with both US and foreign laws. Several years later, he faced a significant legal challenge, but the assets held within the trust were protected.
Steve Bliss emphasizes the importance of proactive planning. Addressing potential future mobility and tax residency issues is not merely an afterthought; it’s an integral part of a robust estate plan. This involves reviewing and updating your plan regularly, considering the laws of all relevant jurisdictions, and working with experienced legal counsel to ensure your wishes are properly documented and protected. “A well-crafted plan can provide peace of mind, knowing your assets will be distributed according to your intentions, no matter where life takes you,” Steve Bliss often shares with his clients.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How do I make sure my digital assets are included in my estate plan?” Or “Does life insurance go through probate?” or “What professionals should I consult when creating a trust? and even: “How does bankruptcy affect my credit score?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.