Are you making plans to leave the country soon? Although you must make plans for the move, you must also give equal attention to the finances that will be affected by your decision.
Family businesses rely heavily on cash. The reason is that everyday operations require liquid capital. For example, imagine that the owner and his family want to move out of the country. To keep the business flourishing, the owner will have to align finances with all operations and processes.
Matt DiFrancesco is joined by Jennifer Patterson, managing partner of Patterson Partners Ltd. The duo discusses how the plans for changing countries will affect the business. In addition, they shed light on what happens in the case of dual or triple citizenship status.
If you require additional information on the topic or want any financial assistance, schedule a free 20-minute conversation with Matt DiFrancesco. You can gain insights into keeping everything on track to reach your goals.
About Jennifer Patterson
Jennifer is a CFP, CIMC, CIMA, TEP, and RMA. She is a recognized expert and leading pioneer in cross-border wealth and life design. In addition, she is also the managing partner of Paterson Partners Limited. The firm is known for pioneering the merged specialty of cross-border wealth management, making it a leading provider of cross-border family office services.
She is also the founder of the Cross Border Institute, which assists dual nationals and globally mobile people to live a fantastic cross borders lifestyle. Moreover, she has taken the time to pen all of her experiences and published the book Financial Planning for Global Living.
Cross-Border Financial Planning
The first complexity level that a business owner faces is “goals”. What does the business owner want? 90% of the time, people say they can’t predict the rest of their lives. That’s normal. However, there should be a rough idea about their long-term vision. This roadmap will help make plans from a point of view that focuses on the country and from a non-country-specific angle.
Multinationals face more complexities as they have assets in different countries, and this situation is where the phrase “clash of law” is used. Take the example of retirement plans, as they are the most common because everyone has money in a retirement plan.
Now suppose the plan is in Australia because a business owner works there or is a citizen who has resided there for several years. The best practice will be to contribute to that plan. However, if that person wants to move to the U.S or has dual nationality and wants to return to the country, that person contributes to the 401k.
The United States’ policies will see that plan differently. Moreover, superannuation will affect the US tax return, whether the person is drawing on it or not. It is a common understanding that if plans are tax-deferred in country A, so, therefore, they must be tax-deferred in Country B, and that is not necessarily the case.
Problems are not limited to taxes. There are multiple challenges associated with estate planning as well. For instance, will you have one will covering worldwide assets, or are you better off having more than one? You will have to follow the laws of different countries and file in their language. It will involve working with the local office to ensure that you have protected the assets and rights.
The Process of Financial Planning for Global Living
Patterson Partners Ltd, the company that ensures life plus wealth achievement anywhere in the world, follows a step-by-step process to assist families in navigating the challenges of moving out of the country.
The first step is to take inventory, which involves checking where all the assets lie and under whose name is it. This step involves both a financial side and an emotional side. Next, the spouses are brought into the process to know what each spouse wants.
After taking inventory and getting the idea of life design, the next step is to focus on the cash flow. It is called a tax filter because it is evaluated how those assets are liquidating and the income flowing in different countries.
Once it is determined what assets belong to whom and how they want to go about it, it is all about formulating a plan and protecting it. All the challenges are considered here, including divorce, death, and other crises.
A major challenge that people face in crises is “insurance”. This is why an entire industry is dedicated to “Expat Insurance”. The reason is that your insurance may not cover you outside of that one country where it was initiated. In all of these cases, you will need proper guidance, plans, and strategies to secure your finances.
How to Get in Touch with Jennifer Patterson
You can go through Paterson Partners Ltd’s website to know what services they provide and how they can assist you. There is a convenient option of a 15-minute introductory session, and you can schedule it to discuss your intentions and challenges. In addition, you can contact Jennifer on her LinkedIn Profile.
Schedule a Conversation with Matt
People are increasingly crossing the borders for countless reasons. However, those with family businesses face tricky business and personal life situations. These events and relationships can create financial tax and estate complexities that can be difficult to navigate.
In such instances, you will require an expert who can assist you with making the right decisions.
Moreover, several challenges are not evident to a business owner but are apparent to a financial technician. By siding with someone like HighLift Financial, you can be prepared for all highs and lows while making the most of your business. Schedule a free 20-minute conversation with Matt DiFrancesco today!
In addition, you can read why it is crucial to align your family and business for generational wealth. Plus, check out how HighLift Financial is bridging the gap in the automotive industry.
Disclaimer
The information compiled and posted here solely represents the opinions and views of the guest. It might not be similar to the views and statements of High Lift Financial. It is not a substitute for tax or legal advice or professional investment.
Always consult your financial advisor with any queries related to personal or business planning. DiFrancesco Financial Concierge, LLC. d/b/a HighLift Financial is a Registered Investment Advisor registered with the State of Pennsylvania and subject to the State of Pennsylvania’s regulatory oversight.