U.S. pre-immigration tax planning

Full transcript

0:12 Hi, I’m Max Dilendorf, a New York–based attorney.

0:16 Our firm advises international families, investors, business owners, and foreign professionals relocating to the United States on pre-immigration tax planning.

0:28 If you are planning to move to the U.S., there is one number you absolutely need to know: Sixty thousand dollars. Because under U.S. estate tax law, a nonresident who owns U.S. assets may be entitled to only a $60,000 estate tax exemption.

0:48 Let me explain why this matters. If a foreign national owns a condominium or other real estate anywhere in the United States worth, for example, $1,000,000 and passes away while classified as a nonresident for estate tax purposes, only $60,000 of that value is exempt.

1:10 The remaining $940,000 may be subject to U.S. estate tax at rates reaching up to 40 percent.

1:19 That could mean a tax bill of $350,000 to $400,000 — on a single $1 million property or other types U.S. situs assets.

1:31 Now let’s compare that with the rules that apply to U.S. citizens.

1:36 For 2026, the federal estate tax exemption is $15M million per individual.

1:44 Married couples can combine their exemptions and protect up to $30 million from federal estate tax under current law. Think about that difference.

1:55 One system allows $15M million per person in estate tax protection.

2:00 The other allows only $60,000 for non-U.S residents.

2:06 The gap is staggering. And here is where the real tax trap begins.

2:12 Once you become domiciled in the United States for estate tax purposes, the exposure can expand beyond U.S. real estate.

2:21 Under federal law — specifically 26 U.S. Code § 2001— the estate tax applies to the worldwide assets of individuals who are domiciled in the U.S. at the time of death.

2:35 That means not just U.S. property, but also foreign real estate, investment accounts, crypto, stocks, and ownership interests in private companies and family businesses anywhere in the world. In other words, once U.S. domicile is established, your entire global balance sheet may fall under the U.S. estate tax system.

2:57 A lot of people think that being in the U.S. on a temporary visa — like E-2, H-1B, or L-1 — automatically protects them from this kind of exposure.

3:08 The same misunderstanding often comes up with so-called Trump’s “Gold Card” investor visa programs as well. But that assumption is not accurate For estate tax purposes, domicile is based on physical presence and intent to remain indefinitely — not simply your visa category. Immigration status and tax domicile are separate legal concepts. If you later get a green card, including through the EB-5 program, you also become subject to U.S. income tax on your worldwide income.

3:48 For example, if you purchased property in Spain or the UAE years ago for $100,000, and after becoming a U.S. permanent resident you sell it for $1,000,000, the United States will generally tax the $900,000 capital gain — although the property is located overseas and you were not a U.S.

4:14 resident at the time you originally purchased it. The same principle applies to foreign securities, crypto, private equity holdings, operating businesses, and other appreciated global assets.

4:28 This is why pre-immigration tax planning is so critical.

4:33 The key is to restructure assets before U.S. tax residency or domicile is established.

4:42 There are sophisticated and compliant strategies available.

4:47 These may include U.S. and offshore trust planning, corporate restructuring, and insurance-based solutions like Private Placement Life Insurance, or PPLI.

5:02 When structured properly before U.S. residency begins, PPLI can allow investment assets to grow inside a life insurance policy wrapper. Under U.S. tax rules, growth inside the policy can accumulate on a tax-deferred basis, and policy proceeds are generally received income tax-free.

5:27 For international families with concentrated stock positions, private equity holdings, digital assets, or operating business interests, PPLI can create income tax efficiency, estate planning leverage, and asset protection — all within a compliant structure.

5:48 But timing is everything. Once U.S. domicile or tax residency is established, many planning opportunities narrow significantly or disappear altogether.

6:01 If you are thinking about moving to the United States under an L-1 E-2 H-1B EB-5 or Trump’s “Gold Visa” Program advance planning matters.

6:10 When done correctly, it can protect significant wealth for you and your family.

6:16 If you would like to discuss your situation, reach out to us for a confidential consultation.

A transcript of the recording, so it reads as speech rather than as prose. It explains the law in general terms and is not advice on your own situation, which turns on facts this video cannot know.