EB5 Investors Magazine Volume 6, Issue 1 | Page 67

Pre-Immigration Tax Planning: 10 Most Common Mistakes To Avoid When Using Offshore Trusts Steps to take before becoming a United States resident to avoid getting hit with unexpected and unfavorable U.S. income and estate tax consequences. By Lazaro J. Mur I f you are thinking about moving to the United States, you should be thinking about pre-immigration tax planning. Otherwise, you may face significant U.S. income and estate tax consequences as a result. Proper and timely pre-immigration tax planning may involve establishing an offshore trust. Here are the top 10 most common mistakes to avoid when using offshore trusts from a U.S. tax planning point of view. NOT KNOWING ALL THE FACTS Many readers thinking about moving to the United States do not understand the nature of the U.S. tax regime because they may be coming from a jurisdiction that has a totally different tax system. Once you move to the United States with your green card, you become a U.S. resident for income tax purposes. You will be taxed on your worldwide income and, if you are deemed domiciled in the United States as a result of moving to the United States, then your entire worldwide holdings will be subject to estate taxes. Needless to say, this is a harsh reality for some to understand, much less accept. This is why pre- immigration tax planning is of critical importance if you are thinking of moving to the United States. EB5INVESTORS.COM 66