We’ve all heard the phrase that the world is getting smaller. It’s more common for people to have children who are citizens of countries other than where the parent lives. This can cause some questions when setting up your estate plan. We are sometimes asked: what is the best way to leave my investment account to my non-citizen child?
Due to fears of money laundering, some firms make it difficult for people who live outside of the US to own investment accounts. This problem is sometimes more of a technical issue with the brokerage firm rather than a legal issue with inheritances. The firm may frown upon someone who resides outside of the US owning an account with them.
When you are researching investment firms, this may be one question to ask. Also, when setting up your estate plan, understanding the rules of each firm is important to know how to leave the investments to your child.
If your investment firm does not allow you to name your child as a beneficiary due to them living outside of the US, you can look at other ways to set up their inheritance.
People often establish a will or trust to pass their investments to their children. When you do this, we recommend you set up a person in the US to be the executor of your will or a trustee to oversee the inheritance. While this is often a good idea and a way to pass your investments to your children, it doesn’t address the initial problem of the brokerage firm not allowing a person who resides in another country to own an account,
One way to ensure your investment passes to your child is to have your assets sold, and the proceeds then go to your child. Working with a financial accountant and an experienced estate planning attorney will ensure your estate plan is set up to leave your child the most money possible.
Do you have questions about setting up a will or trust in Illinois? We can help ensure your child inherits your investments. Contact us today at the Estate & Probate Legal Group at 630-864-5835. Our experienced attorneys understand applicable laws and can advise you on the best options to protect your loved ones.
Areas we serve: Cook, DuPage, Kane, Lake and Will counties.