Estate Planning for Foreign NationalsA World of Opportunity

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Estate Planning for Foreign Nationals–A World of Opportunity OLA 2026 0314 For producer use

Estate Planning for Foreign Nationals–A World of Opportunity OLA 2026 0314 For producer use only. Not for distribution to the public.

Key Trends Glocalization For producer use only. Not for distribution to the public.

Key Trends Glocalization For producer use only. Not for distribution to the public.

Why Consider the Foreign National Market? • Large, growing population • Foreign Nationals face

Why Consider the Foreign National Market? • Large, growing population • Foreign Nationals face unique U. S. planning challenges • Significant need for information on strategies and planning For producer use only. Not for distribution to the public.

Where are Foreign Nationals? Seattle Boston Minneapolis Philadelphia Sacramento Denver Las Vegas Los Angeles

Where are Foreign Nationals? Seattle Boston Minneapolis Philadelphia Sacramento Denver Las Vegas Los Angeles New York Detroit Washington, DC Colorado Springs Phoenix Atlanta Dallas – Fort Worth Orlando Tampa Houston West Palm Beach Sarasota Miami For producer use only. Not for distribution to the public.

Understanding Needs Foreign Nationals fall into two categories: • Resident Aliens • Non-Resident Aliens

Understanding Needs Foreign Nationals fall into two categories: • Resident Aliens • Non-Resident Aliens For producer use only. Not for distribution to the public.

Resident Aliens • Foreign National with permanent U. S. home • Worldwide assets subject

Resident Aliens • Foreign National with permanent U. S. home • Worldwide assets subject to U. S. estate and gift tax • Denied certain tax advantages available to U. S. citizens For producer use only. Not for distribution to the public.

Non-Resident Aliens • Foreign National with permanent home in another country • Only U.

Non-Resident Aliens • Foreign National with permanent home in another country • Only U. S. assets subject to U. S. estate and gift tax For producer use only. Not for distribution to the public.

Residency Factors • What is your immigration status? • Where do you spend most

Residency Factors • What is your immigration status? • Where do you spend most of your time? • Where do you consider home to be? • Do you own a home in the United States? For producer use only. Not for distribution to the public.

Planning Issues • Resident Aliens with significant worldwide assets • Non-Resident Aliens with U.

Planning Issues • Resident Aliens with significant worldwide assets • Non-Resident Aliens with U. S. -based assets • Married couples with a Foreign National spouse For producer use only. Not for distribution to the public.

U. S. Estate Tax Comparison Resident Alien (RA) Non-Resident Alien (NRA) Lifetime estate tax

U. S. Estate Tax Comparison Resident Alien (RA) Non-Resident Alien (NRA) Lifetime estate tax exemption $5, 340, 000 $60, 000 Estate tax rate 40% top tax rate Only if inherited assets are transferred to QDOT Unlimited marital deduction Assets subject to U. S. estate taxes All worldwide assets *Intangible property includes stock in a U. S. corporation and interest in a U. S. partnership For producer use only. Not for distribution to the public. U. S. properties, including most intangible properties*

Resident Aliens Worldwide assets subject to U. S. estate tax • Property in the

Resident Aliens Worldwide assets subject to U. S. estate tax • Property in the United States • Property outside the United States For producer use only. Not for distribution to the public.

What they don’t know… A survey of immigrants to the U. S. with a

What they don’t know… A survey of immigrants to the U. S. with a net worth of $10 million or more found: Survey Question Asked % Who Answered Yes Before emigrating to the U. S. those who sought advice as to the consequences of acquiring a U. S. residency for U. S. gift and estate taxes 34. 5% Obtained advice for making gifts of non-U. S. property prior to coming to the U. S. 10. 9% After emigrating to the U. S. , those who sought tax advice 49. 6% Of the above group, those who sought advice on U. S. estate planning that could minimize estate taxes 6. 8% Source: “Clueless, ” Trusts and Estates, December 2003 For producer use only. Not for distribution to the public.

Why Is Planning Important? Meet Carlos, a Peruvian national, U. S. resident • $15

Why Is Planning Important? Meet Carlos, a Peruvian national, U. S. resident • $15 million in U. S. assets • $20 million in Peruvian assets For producer use only. Not for distribution to the public.

Estate Erosion Gross Estate $35, 000 Estate Tax $11, 845, 800 Net Estate $23,

Estate Erosion Gross Estate $35, 000 Estate Tax $11, 845, 800 Net Estate $23, 154, 200 Estate Shrinkage 33. 85% For producer use only. Not for distribution to the public.

Solution: Trust owned life insurance • Create irrevocable life insurance trust • Trust provides

Solution: Trust owned life insurance • Create irrevocable life insurance trust • Trust provides liquidity for estate taxes and other needs For producer use only. Not for distribution to the public.

Non-Residents Purchasing U. S. Real Estate For producer use only. Not for distribution to

Non-Residents Purchasing U. S. Real Estate For producer use only. Not for distribution to the public.

What They Don’t Know Resident Alien Non-Resident Alien $5. 34 M $60, 000 For

What They Don’t Know Resident Alien Non-Resident Alien $5. 34 M $60, 000 For producer use only. Not for distribution to the public.

Why Planning Is Important Niran • Thai resident and national • Purchased ski getaway

Why Planning Is Important Niran • Thai resident and national • Purchased ski getaway in Colorado For producer use only. Not for distribution to the public.

U. S. Estate Tax Exposure $3 M home in Telluride, CO $1. 1 M

U. S. Estate Tax Exposure $3 M home in Telluride, CO $1. 1 M estate tax liability in 2014 For producer use only. Not for distribution to the public.

Nonresident Aliens U. S. Gift and Estate Situs Rules Type of property transferred Subject

Nonresident Aliens U. S. Gift and Estate Situs Rules Type of property transferred Subject to U. S. Gift tax Subject to U. S. Estate tax Real property located in U. S. Yes U. S. tangible personal property (i. e. , cash, jewelry, paintings, automobiles) Yes U. S. intangible personal property (i. e. , stocks in U. S. corp. , interest in U. S. partnership) No Yes Ownership interest in a U. S. life insurance policy on oneself No* No *A gift of a life insurance policy on oneself may be subject to the IRC § 2035 look back rule, and therefore may be subject to estate taxes if included within the decedent’s estate. For producer use only. Not for distribution to the public.

Estate Erosion Death in 2014 Tentative Tax Less Credit ($1, 145, 800) $13, 000

Estate Erosion Death in 2014 Tentative Tax Less Credit ($1, 145, 800) $13, 000 Net Taxes ($1, 132, 800) Net U. S. Assets $1, 867, 200 Estate Erosion = 38% For producer use only. Not for distribution to the public.

Alternative 1 Intangible Property Tangible Property Gift to Heirs For producer use only. Not

Alternative 1 Intangible Property Tangible Property Gift to Heirs For producer use only. Not for distribution to the public.

Alternative 2 For producer use only. Not for distribution to the public.

Alternative 2 For producer use only. Not for distribution to the public.

Alternative 2 For producer use only. Not for distribution to the public.

Alternative 2 For producer use only. Not for distribution to the public.

Alternative 2 For producer use only. Not for distribution to the public.

Alternative 2 For producer use only. Not for distribution to the public.

Alternative 2 For producer use only. Not for distribution to the public.

Alternative 2 For producer use only. Not for distribution to the public.

Alternative 3 Life Insurance For producer use only. Not for distribution to the public.

Alternative 3 Life Insurance For producer use only. Not for distribution to the public.

Married Couple with Foreign National No unlimited marital estate deduction For producer use only.

Married Couple with Foreign National No unlimited marital estate deduction For producer use only. Not for distribution to the public.

Love knows no boundaries ENGLAND / 33, 877 GERMANY / 92, 997 CANADA /

Love knows no boundaries ENGLAND / 33, 877 GERMANY / 92, 997 CANADA / 69, 887 CHINA / 29, 532 JAPAN / 28, 964 ITALY / 19, 080 CUBA / 14, 430 SPAIN / 12, 653 KOREA / 39, 846 VIETNAM / 20, 951 INDIA / 35, 092 THAILAND / 13, 368 PUERTO RICO / 54, 551 PHILIPPINES / 74, 180 MEXICO / 390, 950 TOP COUNTRIES FOR CROSS-BORDER MARRIAGES TO A U. S. CITIZEN (TOTAL NUMBER OF COUPLES IN 2010) Source: "Legal Hassles of Global Love Affairs” Wall Street Journal, Summer 2013 For producer use only. Not for distribution to the public.

The Issue U. S. Citizen Foreign National For producer use only. Not for distribution

The Issue U. S. Citizen Foreign National For producer use only. Not for distribution to the public.

The Issue No Deduction U. S. Citizen Foreign National For producer use only. Not

The Issue No Deduction U. S. Citizen Foreign National For producer use only. Not for distribution to the public.

The Issue U. S. Citizen Foreign National For producer use only. Not for distribution

The Issue U. S. Citizen Foreign National For producer use only. Not for distribution to the public.

The Issue Unlimited Marital Deduction U. S. Citizen Foreign National For producer use only.

The Issue Unlimited Marital Deduction U. S. Citizen Foreign National For producer use only. Not for distribution to the public.

Why Planning Is Important • Mark, a U. S. citizen • Anna, a Philippine

Why Planning Is Important • Mark, a U. S. citizen • Anna, a Philippine citizen and U. S. Resident Alien • $15 million net worth For producer use only. Not for distribution to the public.

Alternative One: QDOT Mark U. S. Citizen Anna Philippine Citizen Resident Alien For producer

Alternative One: QDOT Mark U. S. Citizen Anna Philippine Citizen Resident Alien For producer use only. Not for distribution to the public. Unlimited Marital Deduction

QDOT • No immediate estate taxation • Assets “stuck” in U. S. • Distributions

QDOT • No immediate estate taxation • Assets “stuck” in U. S. • Distributions limited to income and hardship OR immediate estate taxation • Need U. S. trustee, may require bond For producer use only. Not for distribution to the public.

Alternative Two: Life Insurance Mark U. S. Citizen Anna Philippine Citizen Resident Alien For

Alternative Two: Life Insurance Mark U. S. Citizen Anna Philippine Citizen Resident Alien For producer use only. Not for distribution to the public. Legacy Trust with Life Insurance

Why Plan for Foreign Nationals? • Large, growing demographic • Special financial planning needs

Why Plan for Foreign Nationals? • Large, growing demographic • Special financial planning needs • Resident Aliens– worldwide estate • Non-resident Aliens– U. S. estate • No unlimited marital estate deduction For producer use only. Not for distribution to the public.

Life Insurance • A simple solution • Internationally competitive For producer use only. Not

Life Insurance • A simple solution • Internationally competitive For producer use only. Not for distribution to the public.

Next Steps • Review your book of business • Reach out to contacts that

Next Steps • Review your book of business • Reach out to contacts that match the client profile • Strengthen and build your referral network For producer use only. Not for distribution to the public.

Look at your existing business • Immigrant clients? • Clients with immigrant spouses? •

Look at your existing business • Immigrant clients? • Clients with immigrant spouses? • Develop a champion client For producer use only. Not for distribution to the public.

Look at your neighborhood • • • Nearby colleges/universities? Nearby hospitals? Nearby military bases?

Look at your neighborhood • • • Nearby colleges/universities? Nearby hospitals? Nearby military bases? Talk to realty firms for leads Align with immigration and/or international tax attorneys and real estate agents catering to foreign national home sales • Network with ethnic business associations For producer use only. Not for distribution to the public.

Why Transamerica? • Dedicated international underwriting team • Established in 1998 – deep understanding

Why Transamerica? • Dedicated international underwriting team • Established in 1998 – deep understanding of landscape • Access to experts & marketing materials: • • Attorneys and Certified Financial Planners providing consultative support and case design Chinese and Spanish language materials • Foreign Nationals Connection: • • Hub for information, sales ideas, and materials & forms Viewable across mobile, tablet, laptop, and desktop For producer use only. Not for distribution to the public.

Why Transamerica? • i. Pad App • Clear and engaging animations • Expand market

Why Transamerica? • i. Pad App • Clear and engaging animations • Expand market • No product limitations • Guaranteed products available • Very competitive premiums • Close more business • Best underwriting risk class generally available For producer use only. Not for distribution to the public.

Transamerica’s Available Resources Marketing Tools Foreign Nationals Team Support Dedicated International Underwriting Team i.

Transamerica’s Available Resources Marketing Tools Foreign Nationals Team Support Dedicated International Underwriting Team i. Pad App Foreign National Connection web site Contact Advanced Marketing (877) 238 -6758 foreign. national@transamerica. com For producer use only. Not for distribution to the public.

This material was not intended or written to be used, and cannot be used,

This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here. Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state or foreign laws and regulations or income or estate tax treaties between the U. S. and other countries upon clients and prospects. Clients should consult with and rely on their own legal and/or tax advisor to determine the consequences, if any, of owning or receiving proceeds from a Transamerica policy. Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of March 2014. OLA 2026 0314 For producer use only. Not for distribution to the public.