Pre-Election Strategies for Wealthy Americans
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The U.S. political winds are changing in the run up to the November 2024 general election. High-net worth (HNW) Americans need to be prepared for every contingency, including Democrats winning a trifecta of POTUS and majorities in both houses of Congress.
If that happens, wealthy Americans will be facing several proposed “tax the rich” changes to tax policies. Advisors must propose changes to their client’s planning to negate or minimize the impact of such changes. This is analogous to how homeowners react when living in a wildfire zone. Wealthy Americans should use fire prevention strategies to avoid a catastrophic impact on their fiscal house.
In addition, they should explore the “premium” (i.e., cost) of acquiring “fire insurance” consisting of a back-up citizenship or residence and developing an effective “fire escape plan” or expatriation tax plan in the U.S. The acquisition of fire insurance and a fire escape plan does not mean that one must use them. Rather, it provides “optionality” should a devastating tax wildfire arrive at your doorstep.