San Francisco Bay Area Tax Attorney Releases "Buying U.S. Real Estate When Your Child Studies In America" Guide for Non Resident Aliens

Download this guide at www.calprobate.com/NRA

Too many parents of children studying in America 'fly in the dark' when it comes to securing their loved ones’ financial future.

(PRWEB) August 30, 2011

Silicon Valley estate planning and probate lawyer Janet Brewer has released a new guide, "Buying U.S. Real Estate When Your Child Studies In America." The free 14 page guide is available at calprobate.com/NRA.

“If you are a non-citizen putting a title in your name, it makes sense to have a qualified advisor help you avoid tax traps,” says Brewer. “Otherwise, if something were to happen, you would only be entitled to a $60,000 exemption from U.S. gift and estate taxes. Non-resident aliens (NRAs) pay a much higher rate of gift and estate taxes than U.S. citizens. The good news is that with a smart investment in good counsel, you can protect both your loved ones and your assets.”

Real-World Examples Illustrate Key International Estate Planning Issues

Brewer gives examples of nonresident aliens from several countries to illustrate key questions, issues and choices such families often face. “The examples are made up,” she explains, “but if your situation is anything like those in my examples, you need the help of an experienced international estate planning attorney.”

• Example #1: The Sasakis Learn the Risks of Online Legal Forms: If something happened to Emiko and Dai Sasaki of Tokyo, their son Hiro, a student at Stanford, could face a tax bill of $143,000. Learn how Dai hires an attorney and creates a tax-saving plan.
• Example #2: The Francos Coordinate Estate Planning Between Countries: Genevieve Franco of Paris studies at USF and lives in the Francos' second home in Burlingame. Learn why the Francos urgently need an attorney's help to coordinate estate planning between the U.S. and France.
• Example #3: The Laus Benefit From Proper Healthcare Authorizations: Kim Lau of Hong Kong, a student at California University of Management and Technology, gets injured one day. Learn which documents on file authorize his doctors to share health information with his parents.
• Example #4: The Patels “Fire” Their Prepaid Legal Plan: The Patels of Bangalore, whose daughter Kali is entering Menlo College, try a prepaid legal plan for international estate planning. Learn why they soon switch to working with a highly regarded attorney instead.
• Example #5: The Vogels Pass On Both Values and Valuables: Peter Vogel of Frankfurt owns a Pacific Heights home. Learn how he structures his estate plan to express his values to his daughter Iris, who is entering law school at Hastings, and to future grandchildren.

Trend: More NRAs Purchasing in College Areas

The United States has long been a desirable place to own property. A recent survey by the National Association of Realtors as part of its 2011 Profile of International Home Buying Activity found that the number of foreign exchange students at U.S. colleges and universities has increased the demand for real estate by foreign buyers. Many foreign families purchase U.S. properties in college areas so their child has a place to live – and to take advantage of what appears to be a “buyers’ market.”

Why Putting Off Estate Planning Is Especially Risky for NRAs

“Some people consider it bad luck to discuss death,” acknowledges Brewer. “But it’s important to set aside our emotions and consider a key fact: Federal estate and gift tax laws impose onerous restrictions on non-citizens - even if you have a ‘green card’.” Consider:

• Outright gifts during your lifetime to a non-U.S. citizen spouse – including making him or her joint owner of certain assets – can trigger gift tax problems immediately.
• A non-resident non-citizen with no green card who bought a $1.5 million house with cash, intending to leave it to one of his children through a will or trust could trigger an estate tax of $495,000. With advice from the right expert, she could avoid that tax bill.
• Likewise, gifts at death to a non-citizen spouse may not qualify for the “unlimited marital deduction.” Your unsuspecting widow or widower may be forced to pay hundreds of thousands of dollars in estate taxes shortly after your death.
• If an investor buys a $1.5 million property in U.S. and dies owning it without ever having put it in a trust, the probate cost alone could be as much as $28,000. If that investor also happens to be a non-resident alien, the estate taxes could be $495,000.

The takeaway: Even if your estate is modest, the tax effects of poor planning on NRAs can be devastating.

Series of Guides Cover a Range of Perspectives

The guide released today is one in a series of estate planning and asset protection guides offered by Brewer at calprobate.com/resources:

• Choosing Your Bay Area Estate Planning Attorney: 6 Point Checklist, 4 Examples, 15 FAQs, Typical Fees, and More (June 2011)
• U.S. Gift Tax and Estate Tax Planning for Non-Residents and Non-Citizens (Feb 2011)
• Year End Tax Law Update for Bay Area Families (2010)
• Tax Law Update for San Francisco Bay Area CPAs Serving High Net Worth Clients (2010)
• How to Choose Your Trustee in California (2010)

Brewer also publishes each week at the California Probate, Trusts, and Estate Law Blog and posts tips and links on Twitter, Facebook, and LinkedIn. Those on Brewer's mailing list get the earliest notice about new resources when they come available.

Examining Your Options Now

“In my 20+ years as an estate planning attorney, I've found that most families – and perhaps especially nonresident aliens (NRAs) – want straight talk when it comes to legal and financial matters,” Brewer says. “Too many parents of children studying in America “fly in the dark” when it comes to securing their loved ones’ financial future. I have heard so many heart breaking stories of families having to pay dearly during painful times because they lacked an adequate estate plan. My team and I can set up documentation, write any complex agreements, and take other steps to help protect families. But only you can take the very first step: examining your options now.”

About the Law Offices of Janet L. Brewer

If you're like most people, you don't want to think about what might happen to your loved ones after you're gone -- or to you if you were to become disabled. But for lasting peace of mind, effective estate planning is a necessity. It involves asking, What is truly important to me? Who should care for my minor children? How much money is "enough" to leave to my family? What should be my financial legacy?

We help guide you in addressing these issues, with legal services for wills, trusts & estates. We specialize in:

• International estate planning for non resident aliens
• Probate services for those in the Silicon Valley area
• Asset protection for Bay Area families
• California estate planning
• Fiduciary counseling and estate administration

Ensure you get a responsive, straight-forward approach to estate planning from an experienced estate planning professional. Janet Brewer is a Palo Alto probate, trusts, and estate planning attorney with an advanced degree in tax law. She has practiced California estate planning, advanced gift-planning, and California probate law exclusively since 1991, and is Certified as a Specialist in Estate Planning and Probate Law by the California State Bar Board of Legal Specialization.

Learn more at calprobate.com or call (650) 325-8276.

Serving Palo Alto, Atherton, Portola Valley, Woodside, Los Altos, Mountain View, Sunnyvale, Menlo Park, Redwood City, Belmont, San Carlos, San Mateo, Burlingame, Santa Clara, Cupertino, Saratoga, Los Gatos, Campbell, San Jose, Santa Clara County, San Mateo County, Alameda County, San Francisco County, Santa Cruz County, and Silicon Valley.

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