Are you married to a non-US citizen? Make sure to protect your wealth! Estate taxes can cost you millions if you don’t plan carefully.

What can you do about it?

• Give lots of gifts when you’re alive! Discover how gifting to your spouse and children during your lifetime can help mitigate estate tax burdens
• Learn about the benefits of setting up a QDOT (Qualified Domestic Trust) and how it can defer estate tax, providing an income stream to your non-American spouse
• Understand the importance of discussing your estate plan with professionals, and ensuring clarity to avoid potential legal disputes in the future

The insights shared in this episode could save you millions of dollars in estate tax (of course, that depends how much money you have)! Remember, The Goldstein On Gelt Show and its host, Douglas Goldstein, are not tax advisors. Consult with your own tax professionals before making any changes.

Are you an American married to a non-U.S. citizen? If so, understanding the complexities of cross-border financial planning could save you and your heirs millions of dollars in estate tax (depending on how much money you have).

When it comes to financial planning for cross-border families, especially those with substantial assets, it’s crucial to plan ahead of time how the family wealth will be passed on. One of the first things to consider is your estate plan. Determine how you want your assets to be distributed in the event of your death, whether to your non-resident alien (NRA) spouse, your kids, or to charity.

For American couples, leaving the entire estate to the second American spouse comes with no estate tax. However, if you’re married to a non-resident alien (a non-U.S. citizen), there are tax considerations to address during your lifetime and potential estate tax implications afterward. To mitigate these tax payments, gifting assets to your spouse up to the allowable limit during your lifetime, and planning with a tax professional and financial advisor how to pass your money to your kids, can help to lower the estate tax.

It’s essential to be mindful of the potential tax implications for your non-resident alien spouse and ensure they understand the tax obligations they may face in the event of your passing, particularly if they will inherit and hold assets in the U.S. Seeking the guidance of a cross-border financial advisor who can help structure your portfolio in a fashion that will minimize the estate tax will greatly help your spouse.

In other cases, the use of a qualified domestic trust (QDOT) may be considered as a means of deferring estate tax in the case of the American spouse passing. Collaborating with a legal professional to set up a QDOT to match your family situation.

When planning intergenerational transfers, balancing the financial security of your spouse and the desire to help your children, while handling taxes, is essential. Working with professionals who specialize in building tailored financial plans, can help you find the balance between all parties in the family.

Remember, proactive and comprehensive planning could be the key to protecting your wealth and ensuring your family’s financial well-being across generations.

The Goldstein On Gelt Show and its host, Douglas Goldstein, are not tax advisors. Consult with your own tax professionals before making any changes.

If you're not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug's free ebook The Retirement Planning Book.

Managing U.S. pension plans and IRAs from abroad can be challenging. Difficulties with pension companies and tax consequences can be tough.

Discover the pros and cons of moving your pension plan into a U.S.-based IRA account, and how to effectively manage your portfolio.

Here are some key takeaways:

1. Evaluate your pension plan and consider the option of moving funds to an IRA with the help of an expert
2. Research and find a suitable IRA account provider that caters to expatriates, offering reasonable fees and access to various investments
3. Initiate the transfer of funds and work with a financial advisor to optimize the tax benefits and diversify the portfolio effectively

Maximize your retirement savings, by making sure you have a well-built financial plan!

Financial planning is always important, but it’s especially crucial when health issues arise. A well-built plan allows you and your family to focus on health and family connections, without worrying about the day-after. How can you make sure you are setting yourself up for a smooth transition of wealth to your family?

Tune in and learn about the nuances of managing shared accounts, the pros and cons of transferring control to family members, and the critical role of clear communication in preserving both wealth and relationships.

Some key insights:

1. Learn how to effectively shift financial authority to a trusted individual within the family, balancing legal necessities with personal dynamics.
2. Learn about the importance of transparent discussions about financial matters with family members, especially in light of health changes.
3. Discover some of the tools available, such as powers of attorney and trusts, that allow your wishes be followed.
4. Professional advice from financial and legal advisors is crucial in creating a seamless and effective estate plan that aligns with your long-term goals.

For more information, visit the show notes at https://goldsteinongelt.com/personal-finance/financial-planning-for-illness-and-death

Are You Overlooking the Importance of a Financial Plan?

When was the first time you spoke with a financial planner? Let me tell you about a retired couple who I met who had never spoken to a financial planner before. The couple's lack of understanding about the role of a financial planner and the way their investment portfolio was built, highlighted a common misconception among individuals when it comes to managing their finances.

When sitting down with a Certified Financial Planner™ practitioner (CFP®) who is dedicated to understanding your unique financial situation, and guiding you through the complexities of investing, you are setting yourself up for success.

Building a comprehensive financial plan and working with a professional team (financial planner, accountant, and lawyer) can lead you to financial well-being.

A few points to consider:

1. Importance of a Financial Planner: Many individuals often focus solely on their investment portfolios without considering the broader financial picture. A Certified Financial Planner™ practitioner can help guide you through essential aspects of financial planning, including retirement goals, family, expenses, insurance, and health—providing a comprehensive view of your finances.

2. Understanding Your Investments: Having a clear understanding of all your investments and their implications on your overall financial situation is crucial for proper financial well-being.

3. Partnering with Professionals: Partnering with a financial planner (and other professionals) doesn't mean surrendering control. Instead, it equips you with a supportive team who can handle administrative tasks and provide advice, while you remain in charge of making the final decisions.

4. Empowerment and Peace of Mind: When you have a strong financial team in place, it empowers you to focus on the bigger financial picture. It can alleviate concerns about making financial decisions, especially during times of illness or unexpected events, offering you and your family peace of mind.

To learn more about managing your finances and gaining a deeper understanding of the role of a financial planner, tune in to The Goldstein On Gelt Show and explore the valuable insights provided in each episode.

Remember, taking charge of your financial well-being is one of the most important steps you can take for a secure and stress-free future!

If you're not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug's free ebook The Retirement Planning Book.

If you're not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug's free ebook The Retirement Planning Book.

Are you considering investing in real estate? Or perhaps you already have real estate investments in your portfolio? If so, it's crucial to understand the potential risks and challenges that can arise. The following stories of two individuals who encountered unexpected scenarios with their real estate investments provide valuable insights and lessons for anyone navigating the world of real estate.

The first case revolves around a client who initially appeared to be a successful real estate investor. He exuded confidence in his portfolio, claiming lucrative real estate deals and assured cash flow from his properties. However, as time unfolded, the reality did not match his optimistic projections. Unforeseen circumstances such as the impact of external factors, including the COVID-19 pandemic, led to a drastic reduction in the expected income from his real estate investments.

One of the crucial insights gleaned from this story is the significant impact of underestimating risk and overestimating returns. The client's assumptions about the reliability and sustainability of his real estate income proved to be misplaced, resulting in unanticipated financial strain and the need to reevaluate his entire investment strategy.

The second story featured a younger client who had invested $50,000 in a real estate deal in Wisconsin. He initially contemplated withdrawing additional funds from his brokerage portfolio to invest in another promising real estate opportunity. However, after sharing the challenges faced by the first client, he reconsidered his decision. He understood the risk of putting all his eggs in one basket and preferred to stick with a more secure, diversified portfolio.

While real estate can be a valuable component of a well-structured investment portfolio, allocating a significant proportion of one's assets solely to real estate can expose an individual to heightened risks and vulnerabilities. The allure of real estate, with its promises of passive income and appreciation, should be balanced with a comprehensive understanding of the potential downsides and the need for diversification. It's vital to approach real estate investments with prudence, ensuring that they complement a comprehensive investment strategy rather than overshadowing or dominating it.

By building a diversified investment approach and thoroughly understanding the nuances of each area of your portfolio, you can navigate potential challenges while maximizing the opportunities for financial growth and stability.

Consider conducting a comprehensive review of your investment portfolio. Assess the proportion of your assets allocated to real estate investments and evaluate how they harmonize with your overall investment strategy.

If you're not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug's free ebook The Retirement Planning Book.

Financial planners frequently meet with folks who want to invest for growth. After all, who doesn’t want to see their portfolio grow? But, growth also means capital gains tax. Are there any investments that encourage portfolio growth but have limited tax liability? On today’s show, Doug answers a listener question about investing for growth. “Jeff” asks if there are investments that encourage portfolio growth, but have little tax liability. While an investment advisor, and not a tax advisor, Doug answers several aspects of the question:

• Are there conservative investments that offer reasonable growth?
• What are the common mistakes people make when investing for growth?
• What is the best way to minimize tax on your investment?

One way to invest for growth is through a SMA – a Separately Managed Account. Watch a short clip on What is a SMA - Separately Managed Account. If you’re not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug’s free ebook The Retirement Planning Book.