IMMIGRATION
Are you planning to permanently relocate and obtain citizenship in another country and worrying your existing estate will face the new country's tax laws?
Whether your existing estate could face tax implications under another country's laws after obtaining new citizenship depends on factors like the type of assets and how they are owned. If assets remain in your individual name once naturalizing abroad, there is a risk they may be fully or partially subjected to estate, inheritance, capital gains or other wealth taxes according to the new country's statutes.
However, setting up an offshore trust prior to relocating/naturalizing can help avoid this. Placing personal and business assets in a trust established in a jurisdiction with beneficial tax and privacy laws, such as Hong Kong, means they are held independently of you as an individual. Therefore, the trust assets should not automatically fall under the later country's tax purview. The trust can also continue operating tax-efficiently according to its original terms. Our trust experts would be happy to review your specific situation and recommend an optimal trust solution.
💡 Capital gains tax rate references in some major countries:
United States:
Long-term capital gains tax (assets held over 1 year) - 15-20%
Short-term capital gains tax (assets held under 1 year) - taxed as ordinary income, up to 37%
Canada:Capital gains inclusion rate of 50%
Capital gains inclusion amount taxed at your marginal tax rate, ranging from 20-53%
United Kingdom:Capital gains tax rate of 10% for basic rate taxpayers
20% for higher and additional rate taxpayers
France:Flat capital gains tax rate of 30%
Germany:Flat capital gains tax rate of 25% plus a 5.5% solidarity surcharge
Singapore:Capital gains are generally not subject to tax unless they arise from trade or business
Hong Kong:No capital gains tax
Australia:Capital gains tax of up to 47% for assets held over 12 months
Up to an individual's marginal tax rate for assets held under 12 months
Estate and inheritance tax rate references in some major countries:
United States:
Estate tax rate of 40% on assets and gifts over $12.06 million in 2023
No inheritance tax at the federal level
Canada:No federal estate tax, but inheritance taxes of up to 53% in some provinces
United Kingdom:Estate tax of 40% on estates over £325,000
France:Estate and gift tax of 45% on assets over €1.8 million
Germany:Estate and gift tax of 30% on assets over €512,500
Hong Kong:No estate, inheritance, or gift tax
Australia:Estate tax thresholds vary by state from $336,000 to $5.71 million, taxed at 16-30% rates </aside>
Don't worry, having assets in a trust doesn't mean you lose access to your money!
Upon account setup, we'll link a credit card to the trust account for your everyday living expenditures. Additional beneficiary cards can also be issued according to need. The card service completely resolved the challenge that obtaining a new credit card can be difficult without an extensive payment history in that foreign country and relying solely on cash is inconvenient. For international spending convenience, our UTGL Asset Link card offers cash access from ATMs worldwide. Daily limits can be set within the online portal for security and oversight.
Rather than dealing with manual reimbursements no matter which country you reside in or travel between, the trust platform streamlines invoice payment for expenses incurred anywhere in the world. Simply upload invoices for recurring items like utilities, tuition fees, or other local expenses to the online portal from any location. Our multi-lingual team will then process payments on behalf of the trust in the appropriate currencies directly to vendors globally. This hands-free solution saves you time and provides seamless cash flow management no matter where in the world your living and banking needs take you.
You also have the flexibility to arrange investments with trust funds. As the settlor, you maintain full investment power and control over how trust capital is deployed into markets to help grow your assets over time. Whether daily living expenses or long-term wealth building, a UTGL trust removes barriers to optimally using your assets.
Obtaining visas, residency, and banking activities (e.g. loan) may require verifiable proof of funds, but your assets are scattered worldwide or outside your moving country?
Our trust account serves as the centralized record of your consolidated net worth, including investments, properties, business interests, and more - regardless of jurisdictional locations. Trust statements generated on the platform provide instant verifiable wealth proof for immigration, citizenship processes, or local requirements.
Establishing Trusts Well in Advance of Immigration for Ongoing Privacy
You are not required to disclose trusts that you own to any authorities in Hong Kong. However, when you set up a trust after you take citizenship or become a tax resident of another country, you may be obligated to report the trust details under that country's laws. Therefore, establishing the trust well before relocating can provide the confidentiality benefit for your trust assets.
A Family with Trust Accounts for Smoother Wealth Transfer
By establishing complementary trust accounts for family members like spouses and children, you can further bolster intergenerational protection of assets, limit taxation, and optimize inheritance planning through strategic gifting to loved ones' accounts. Our team ensures all legal structures work seamlessly together to pass your entire wealth down as intended without delays or fees that may arise under foreign inheritance systems.
