Global Clients
Our clients, no matter where they are in the world, share similar core planning needs: wealth protection, income replacement, survivor income and liquidity, creditor protection, estate tax planning, business continuity, charitable giving, etc. However, while these goals and objectives may not be bound by geographical borders, international clients often face unique challenges arising from cross-border issues and complex family and business structures. When planning for and implementing solutions to their core planning needs, it is crucial to both identify and address challenges like:
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BEJS believes that international insurance solutions can uniquely help global clients achieve their long-term financial goals in today’s increasingly complex fiscal environment. With our in-house expertise and affiliation with M Financial Group, we work with wealthy global clients to protect, preserve, and grow their wealth, ensuring that it is passed on to the next generation as they intended.
M Financial’s international platform provides access to U.S. and international insurance products with global client support across five different segments of international insurance solutions.
Case Study: Married Couple – both Foreign Nationals
Background
A married couple with two college-aged children, both Italian Nationals and age 59, are US residents and are soon to be obtaining their Green Cards. Their estate is valued around $50MM which includes US, UK, and Italian property along with $30MM in US investments. Their assets are held 50:50. Their plan is to leave the US in 7-8 years. The couple has begun to review their wills and refresh their estate planning.
Considerations
- They are concerned that they will be fully subject to US Estate Tax once they obtain their Green Cards.
- There is NO spousal exemption for US Estate Tax, so there will be significant tax liabilities on the first death.
- The couple has limited existing insurance and is conscious of insurability going forward.
Solutions
- $7MM of 10-year level term insurance for “Mrs. Client,” with convertibility options.
- $7MM of permanent insurance for “Mr. Client,” funded for 7-8 years with the option to increase.
- Future insurability has been locked-in.
- With the immediate situation covered, the couple has now begun to review more tax-advantaged insurance options to fit their full estate plan.
Case Study: Married Couple – Husband is from UK / Spouse is US Citizen
Background
A married couple in their early ’50’s has two young children. The husband is from the UK and the wife is a US citizen. The husband is planning on obtaining a Green Card in the near future. Their estate is valued at $100MM which includes $20MM of US investments and $70MM of stock in listed businesses – most of which is owned by the husband. They have no current plans to move from the US.
Considerations
- There is an existing UK IHT liability that will remain for several years.
- They are concerned that the husband will be fully subject to US Estate Tax once he obtains his Green Card.
- There is NO spousal exemption for US Estate Tax, so there will be significant tax liabilities on the death of the husband.
- The couple has limited existing insurance and is conscious of insurability going forward.
Solutions
- Level term insurance for the husband, with convertibility option, to cover the UK liability.
- Permanent insurance for both the husband and spouse to cover US Estate Tax liabilities and for tax-efficient growth of legacy assets.
- Future insurability has been locked-in.
- Allocated funds to use life insurance as an asset class in their overall wealth management plan.
This material is intended for informational purposes only and should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor or plan provider.
Experiences of clients with life insurance products will depend on their unique facts and circumstances and we cannot guarantee the same results for all clients.
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