The long-term approach to expat planning
Posted By Darren Posted On

The long-term approach to expat planning

For many retired savers, leaving a legacy is the ultimate long-term goal. Hence, it is understandable that expat planning requires great organization and premeditation, because successful expat planning cannot be done overnight.

If you have worked hard and invested prudently over the course of your life, it is very likely that the expat Tax (IHT) or the Summer Duty tax system can be a bewildering and troubling specter on the horizon expat financial planning singapore.

Fortunately, there are ways you can structure your wealth to pass it on in a tax-efficient way. However, this process must begin many years before death, so that you have ample time to decide on the identity of the beneficiaries and to make donations, create structures / vehicles and plan your own tax liability.

There is no short-term solution

As an expat,expat planning that relies on a simple fixed strategy or single product is unlikely to reflect the complexity of your cross-border estate planning needs.

Instead, you should consider consulting an experienced local wealth manager who can listen to your goals and circumstances in order to develop a tailored solution that considers all jurisdictional issues that may affect your wealth upon your death.

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Your plan should be more than just asset isolation, it should also consider the needs of your beneficiaries and find a strategy that ensures a smooth asset transition. In most cases, this involves informing your beneficiaries of your plans so they can prepare their finances to make the best use of your generosity. You could also introduce them to your advisor, as this can greatly help the whole process, both now and in the future.

Tax rules rarely become simpler or less onerous over time, but making the most of the existing exemptions and donation rules, while maintaining a certain flexibility, you increase the chances of passing on your assets with the minimum of tax liability.

A good financial advisor can help make you aware of the potential legal and regulatory complexities as well as the many opportunities in this regard – for cross-border individuals this can be particularly complex. A local consultant will make the difference, as they will have the experience and knowledge of all local tax rules and will keep you updated on any relevant changes, minimizing your tax liability and maximizing your assets.

Take care of yourself first of all

Whether your beneficiaries are children, grandchildren, other family members or charities, your succession plan should start by making sure you have taken adequate steps for your safety and liquidity needs.