Private Wealth Management
Since the 1990’s, International Investors have sought private wealth management for themselves (and their families). Private wealth management includes sophisticated investment management, tax and financial planning.
Advisor services include the following:
1. Private Banking
2. Trustee and Fiduciary Services
3. Investment Portfolio and Asset Management
4. Money and Banking
5. Family Offices
6. International Income, Estate and Gift Tax Planning Compliance
7. Asset Protection
For Advisors who represent International Investors, International Income, Estate and Gift Tax Planning Compliance requires an annual review of the following issues:
1. Income Source (Payment of Tax Due and Application of Any Reciprocal Tax Credits Under Tax Treaties)
2. Domicile (Where the Investor Intends to Live Permanently, Which Affects Both Estate and Gift Tax Issues)
3. Income, Estate and Gift Tax Compliance Which Requires a Review of relevant Tax Treaties including:
a. Country of Residence
b. Country of Citizenship
c. Country of Investment/Business Activity
In 2010, International Investors who had numerous residences in multiple countries with global income and worldwide investments need to file all required Income, Estate and Gift Tax returns, report all income annually, or face the aggressive tax prosecution currently being initiated by the IRS (in the U.S.), Germany (in the tax havens), and Switzerland (taxing authorities from numerous countries are investigating Swiss accounts).
If Taxpayers are not in tax compliance they face both civil and criminal penalties which may be both expensive and dangerous. For private wealth management clients, Advisor services should include a review of the prior year’s returns filed, any gifts made during the year, any related estate planning issues.