As the world grows more globalized, it is inevitable that there will be some people that have complicated national identifications and will hold citizenship in multiple countries. As a result, negative tax and other legal implications may come into play as countries that an individual has had little contact with in years come calling. The United States in particular can be a thorny problem due to the claims on income earned overseas that the government has a history of pursuing and the fact that any past legal status, such as a green-card, must be formally renounced to become invalid. When faced with a client with multiple nationalities explore the options that are available including renouncing citizenship or special entities, such as trusts, that can protect a client’s assets.
See Abby Schultz, U.S. Tax Laws Could Snag “Accidental Americans”, Barron’s, September 24, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
