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The American Magazine – Love and Marriage

Love and Marriage go together like …financial considerations for a bi-national couple

As an American living in the UK, almost nothing related to your financial affairs is easy. The consequences of seemingly simple decisions – such as how to pay for a new home or purchase a mutual fund – may create unnecessary tax charges and complexities. There are a number of key milestones that occur, from the time you arrive in the UK to the time you potentially approach and eventually reach retirement. Many of these changes will impact the appropriate wealth management strategies for American expats. Understanding how rules will change for you over time will allow you to plan ahead and make prudent financial deci- sions. In this edition we will address some of the important financial considerations that a US person should be aware of when their spouse is a non-US citizen.

There can be some great plan- ning advantages in the case of a bi-national couple. Opportunities often abound for example in choosing to own certain assets in either spouse name to optimise the tax implications for either US or UK purposes. For instance, the non-US spouse could take advantage of some of the UK tax-advantaged accounts and asset ownership structures in the UK that are gener- ally not beneficial for a US person, whilst the US spouse could focus on utilising US tax-efficient vehicles. In order to take advantage of some of those planning oppor- tunities, one must also be aware of how the US gift and estate tax rules work. The US imposes a tax on transfers of property both during a person’s life and at death. A US person has a current lifetime allowance of $5.43 million before being subject to estate of gift tax

Click here to see the article written by Andrea Solana.

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