Foreign National Program
Qualifications / Requirements
- Net Worth: You must validate and prove a minimum net worth of 2 million in U.S. dollars or equivalent.
- Status: You are a non-resident alien A non-resident alien is someone who:
- Is not a U.S. citizen
- Has domicile (permanent home) somewhere other than in the U.S.
- U.S. Connection: You have a U.S. connection such as assets in the U.S., family members living in the U.S., or regular travel to the U.S. for business or pleasure.
- U.S. Medical Exam: You are able to travel to the U.S. for the solicitation of the sale and medical examination.
- Address Requirements: the policy owner must provide a U.S. billing address that will be used for all policy communications.
- Death benefit minimum: Minimum face amount of one million.
John Harty is a registered representative with, and Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
Citizens of foreign countries who temporarily live in the U.S., but who don't intend the U.S. to be their permanent home are known as "non-resident aliens" (NRAs). They are subject to a unique set of U.S. gift and estate tax rules. Even though much of their net worth may be located outside the U.S., they can still be subject to U.S. gift and estate taxes on their U.S.-based assets.
Wang Li is a 50 year old NRA from China who purchased real estate in San Francisco worth $5,000,000. If Li dies and has no other tangible assets in the U.S., his estate will have to pay U.S. estate taxes of about $1,932,800 - nearly 40% of the value of his real estate property.
| Effect of U.S. estate taxes on Wang Li's $5,000,000 estate | |
| Tentative Estate Tax: | $1,945,800 |
| Less Estate Tax Credit: | $13,000 |
| Net Estate Taxes: | $1,932,800 |
| Net U.S. Assets: | $3,067,200 |
| This is a hypothetical example and is for illustrative purposes only. Results may vary. |
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Wang Li would like to transfer his wealth to his children by providing them with a tax- free death benefit upon his passing. He is a non-smoker and is eligible for a preferred policy that is guaranteed through age 105.
By repositioning $500,000 into a Guaranteed* Universal Life Insurance policy, he would receive a $2,181,000 guaranteed tax-free death benefit for his children that could be used to offset the estate taxes they would have to pay at his death.
*Guarantees are based on the claims paying ability of the issuer.
John Harty, 415-407-4991 or John.Harty@LPL.com
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John F. Harty, AIF® Director of Wealth Management CA Insurance Lic# 0J21486 John.Harty@LPL.com |
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| Not FDIC Insured | Not Bank Guaranteed | May Lose Value |
| Not Insured by any Federal Government Agency | Not a Bank Deposit | |