Today's A-Letter is by our Founding Publisher and Executive Director, Erika Nolan.
Dear A-Letter Reader,
It's the week before Christmas. And it's always interesting to see what's in the news, when most companies, including news organizations, are slowing down to prepare for the holiday break.
For example, yesterday The NY Times ran a story about one of our favorite topics: expatriation. It was a little strange to see such a taboo topic in a mainstream newspaper (even if it is The New York Times).
You have to wonder what made the editor choose to run this story this week. Is it just a slow news week? Or is expatriation really gaining popularity, as the article claimed? Apparently The New York Times interviewed an IRS agent who said over 500 Americans had expatriated this year. Hmmm...
The story began with an anecdote about an ex-marine from California, who decided to give up her U.S. citizenship to avoid estate taxes. Last month, she very unceremoniously turned in her U.S. passport. The ex-U.S. marine had lived in Geneva for 16 years, and was tired of filing her taxes in both the U.S. and Switzerland. (Because of course, the U.S. taxes all its citizens worldwide on any income earned around the globe, no matter where you live.)
This wise Californian maintained her privacy, but NOT revealing her name to The New York Times. However, they did quote her as saying "It's (for) my kids and the estate tax. I don't care if I die with only one Swiss franc to my name, but the U.S. shouldn't get money I earned here when I die."
Or in other words, this ex-marine said what we've been saying for the last five years - that expatriation really can be the "ultimate estate plan" for the right person.
If you're a freedom seeker, who loves to live abroad, then you can legally avoid thousands in income and estate taxes by giving up your citizenship.
You can move to a safer country that stays out of the world's frays as much as possible, like Switzerland. You can move to a country like Panama, which doesn't tax any income earned outside the country.
Not to mention, you get to avoid filing taxes in two nations each year. Trust me: I lived in Ireland for three years as a U.S. citizen. And filing your taxes twice in two different nations makes the April 15th deadline here in the U.S. seem like a field day.
How Could You Legally Expatriate?
There are many steps on the road to trading in your U.S. passport in return for a gigantic cut in your taxes. But in the end it all boils down to four steps really...
1. Securing a second citizenship where you would like to live eventually
2. Moving to the country where you have a second citizenship (I suggest a no-tax jurisdiction).
3. Get your finances in order, whether that means seeking professional advice to move your assets to your new home.
4. And finally turning in your U.S. passport.
Again, this is an extremely bold move. It's not for everyone. But the fact is this is the ONLY way a U.S. citizen can stop paying U.S. taxes. That means it's one of the few ways you can significantly reduce your tax bills - especially if you already favor living in another nation rather than the United States.
If you're interested, I urge you to meet with a qualified financial professional who can tell you if this makes sense for your particular situation.
And keep an eye on the mainstream press this week. You never know when they may start spouting some real insight, when they assume their readers are distracted by the holiday season.
In Wealth & Prosperity This Holiday Season,
ERIKA NOLAN, Executive Director
EDITOR'S NOTE: These days, the U.S. acts as if they own all U.S. citizens. You're taxed no matter where you live, on all income you make, all around the world. The U.S. government even taxes you for dying. Does that seem fair? But you can still legally break away from this "ownership." Learn more about the "ultimate estate plan".