Asian investors shouldn’t hurry to restructure US assets

Following an interview with Buzzacott Partners Carlo Gray and Scott Barber, Asian Private Banker reported that Asian investors should not hurry to restructure their US assets if the estate tax is repealed.

Last updated: 31 July 2018

It quoted Buzzacott partner, Carlo Gray, as saying that, in 2010, the estate tax effectively expired, though it was reinstated just a year later.

Gray said, “It is unlikely that it will be repealed for long and we would therefore not advise clients residing in Asia to change their current US estate tax mitigation strategies.”

Gray also noted that to reduce exposure to estate taxes, clients can establish offshore companies and trusts to hold their US assets; leverage their US real estate to reduce exposure; arrange life assurance that meets the US estate tax liability on death; defer such liability until ‘second death’ using a qualified trust; and make bequests to US-registered charities. 

It also quoted Buzzacott partner, Scott Barber, as saying that unlike the recent healthcare debate in the US, there is likely to be more bipartisan support for tax reform “particularly around individual income and corporate taxes.”  

That said, most Democrats, and some Republicans, will feel an estate tax repeal is a lower priority, Barber commented, adding that many Democrats see the current exemption available to citizens as “more than generous” (USD 5.49 million per individual). 

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Asian Private Banker: Asian investors shouldn’t hurry to restructure US assets if estate tax is repealed

Article first seen in the Asian Private Banker

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