If you own a successful family business, it's very likely that you hope to one day leave this company as part of your legacy for your children and grandchildren. However, if one or more of your children are U.S. citizens or legal residents, gift and estate taxes can present an unexpected financial burden.
An International Estate Planning Attorney Can Help You Avoid Unnecessary Taxes
Proactive planning with an attorney who has experience helping Mexican and Latin American business owners with complex financial needs is the best way to ensure that your business continues to succeed and fund the lifestyle you want your loved ones to enjoy.
Identifying or determining the tax residence or domicile for you and your heirs or beneficiaries and explaining the tax consequences of specific domicile or residency options is the first step to effective planning. For example, even if just one of your heirs is a U.S. citizen, they could face a substantial estate tax burden after your passing and push to liquidate the business you worked so hard to build as a way to repay their debt. Even if your business is physically located in Mexico, it will be subject to gift or estate taxes if your heir or beneficiary is a U.S. citizen or legal resident.
Often, creating a trust is the best way to prevent an unexpected and unnecessary tax bill. A trust created to protect the future of a family-owned company is sometimes called a dynasty trust. However, the name of the trust is less important than making sure the attorney establishing the trust understands your family's unique situation and what you hope to accomplish. Regardless of the name attached, a trust that is poorly prepared won't provide the level of protection you or your loved ones need.
Leave a Lasting Legacy for Your Loved Ones
You can learn more about the value of hiring an international estate planning attorney by requesting a complimentary copy of our guide, 5 Ways Your International Estate Plan Can Be Pulverized by a Lawyer With No International Experience. We also encourage you to contact MEG International Counsel for personalized, forward-thinking legal services from attorneys who are dually licensed to practice in Mexico and the United States. Contact us today to schedule a consultation.