Receiving inheritance can be complex, especially when cross-border transfers are involved. Diya (name change) is a 60-year-old woman who found herself in a difficult situation when her father died in February 2023. Living with her husband for more than seven years. Her parents moved back to India during the US pandemic and lived in the US for 20 years.
The father left, and her 85-year-old mother lived alone in Kurg. This means Diya must manage her father’s assets in the United States while ensuring her mother’s financial security in India and ensuring her future in Norway.
Cross-border complexity
The first challenge she faced was non-compliance in the United States. She and her parents have not been taxed in the United States for at least the last five years. “As U.S. citizens, whether or not they owe taxes, they must file their tax returns annually. (Immpl), a registered investment consulting firm.
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The second challenge is to transfer her inheritance. Diya’s father left behind residential property in the United States, annuities associated with the speech in the United States, and an Individual Retirement Account (IRAS). “The complexity has been added as her mother lives in India and receives Social Security benefits to manage these assets while complying with tax laws in three countries (India, the United States and Norway),” Navaraki said.
Finally, Diya has its own tax inquiry. As a Norwegian resident, she fears how inheriting her father’s assets will affect her financial situation, especially Norway’s wealth tax rules.
Prior to her contact with Immpl, she had been engaged to a U.S. consulting firm and brokerage firm to help claim her father’s insurance policy and IRA. However, the company accidentally put her case in the middle and stopped responding to her.
An article on cross-border wealth management and financial planning led Diya to visit Immpl’s website and set up an introductory call with them. “Our role is to guide Diya and her mother through this transition through a comprehensive, thoughtful approach and leverage strategic partnerships with Chartered Accountant (CA) companies that have existed in all three countries,” Navlakhi said. .”
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The journey requires patience and emotional perseverance. “Balanced emotions while making important financial decisions requires sensitivity and clarity, which we as CEFTS (Certified Financial Transitioner) are able to bring. Obtain father’s property and create sustainable income sources for mothers to Make sure she can live independently in India without financial pressure,” Navaraki said.
Diya’s mother now receives a pension in the United States and withdraws money from investments in India and the United States, and she receives all of this in her bank account.
Teamwork is essential
The complexity of Diya’s financial situation requires a high degree of cooperation. For example, Immpl connects her with Sourcein, a part of Valserve Group, which is full of relationships with tax laws in all three countries. “We used a simplified foreign offshore procedure for Diya, her mother and her late father’s property filed a five-year refund tax and a six-year FBAR (Foreign Bank Account Report). This collaborative effort minimizes the effort to minimize. to fine and make families compliant with U.S. tax laws,” said Anand Sanghvi, founding member and managing partner of Valserve Group.
Immpl also associates her with a U.S. consulting firm with experience in managing insurance claims, IRAs and annuity. “We are a common link that she is happy with CA companies and U.S. consultants. We have several joint calls when it comes to their handling of operations. She will come back to us for advice on their consultation. For example, if U.S. annuities have five She will seek our advice for a paid option,” Navlakhi said.
In progress
The family’s financial situation is still underway. All wealth has been transferred so far in the name of her mother. Immpl is developing a retirement plan and estate planning framework for mothers. Meanwhile, Diya needs to develop a comprehensive strategy for its financial future, which will take shape once CA and U.S. consultants complete their work.
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Her dual citizenship and Norwegian residency may have an impact on taxes due to the country’s wealth and estate taxes. “Through our partnership with CA, we analyzed and optimized taxes in India, the United States and Norway. This helped her make informed decisions while avoiding unconscious tax liabilities across jurisdictions,” Navlakhi said.
There is a long way to go before everything is organized, but thanks to this collaborative approach, Diya is already well in achieving its goals. Her story reminds you that this transformation, while complex, can also be an opportunity to develop a safe and thoughtful financial plan.
