Protect Your Global Wealth from Hidden Risks
Navigating U.S. investments as a foreign national isn’t just about choosing the right asset—it’s about protecting your legacy across borders. U.S. tax law, estate exposure, and regulatory complexities make this one of the most misunderstood areas in global wealth management.
Here are 10 of the most common and costly mistakes I see investors make — and how to avoid them with strategic cross-border planning.
1. Holding U.S. Real Estate Personally
Owning U.S. real estate in your name can expose your heirs to estate tax starting at just $60,000, plus legal liability. Structured ownership via entities like LLCs or foreign trusts is essential for both protection and efficiency.
2. Underestimating U.S. Estate Tax Exposure
Non-resident aliens receive only a $60,000 estate tax exemption—far less than the $13 million exemption for U.S. citizens. If you die holding U.S. assets without planning, your estate may face a tax bill you never expected.
3. Ignoring Available Tax Treaty Benefits
If your country has a tax treaty with the U.S., you may qualify for reduced withholding or estate tax relief. But many investors miss out simply because they don’t file the right forms or work with qualified advisors.
4. Using the Wrong Custodian or Account Structure
Most investment platforms aren’t designed for international clients. A poorly chosen custodian or account type can lead to blocked access, excessive withholding, and regulatory headaches.
5. Losing 30% of Your Dividends to Withholding Tax
U.S. dividends are subject to a 30% withholding tax unless a treaty applies. Many investors unnecessarily forfeit returns due to lack of tax optimization.
6. Ignoring Currency Risk in a U.S.-Dollar Portfolio
Your assets may grow in USD, but what happens when you convert them back to your home currency? Without a currency strategy, market gains can be wiped out by exchange rate fluctuations.
7. Failing to Plan for Succession
U.S. probate is often slow, costly, and complicated—especially for foreign families. A properly structured estate plan ensures your assets pass seamlessly to the next generation.
8. Taking Advice from a Domestic-Only Advisor
If your advisor doesn’t understand international tax treaties, PFIC rules, or FATCA reporting—they may do more harm than good. Cross-border investors require cross-border expertise.
9. Skipping Form W-8BEN or W-8BEN-E
Failing to file the correct forms with your custodian could result in being taxed as a U.S. resident. These documents are your first layer of protection and compliance.
10. Believing U.S. Tax Laws Don’t Apply to You
If your assets are in the U.S., so are your risks. Many non-resident investors assume local residence shields them—but U.S. tax law says otherwise.
Ready to Secure Your U.S. Assets with Confidence?
Avoiding these pitfalls starts with working alongside someone who understands the intersection of global wealth and U.S. jurisdictional risk.
📞 Book a Private Consultation with David Clark
🔗 expatwealthmanagementservices.com
🇵🇦 Based in Panama | Licensed | Trusted by Global Families
Disclaimer:
This material is for informational purposes only and does not constitute legal, tax, or investment advice. Every investor’s situation is unique. Non-U.S. persons should seek qualified cross-border legal, tax, and financial advice before making any decisions regarding U.S. assets. David Clark is licensed in Panama and advises non-U.S. persons and expats on U.S. asset planning strategies.
