• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Will for Australian Citizen living in Louisiana

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

NewOrleansSteve

New member
I am an Australian citizen but am a US resident for tax purposes and reside here on an E2 Visa arrangement. I have assets in Australia and Louisiana and am wanting to get a will. I am not sure whether I should get this done in Australia or the USA (or both?). Any advice is appreciated.
 


LdiJ

Senior Member
I am an Australian citizen but am a US resident for tax purposes and reside here on an E2 Visa arrangement. I have assets in Australia and Louisiana and am wanting to get a will. I am not sure whether I should get this done in Australia or the USA (or both?). Any advice is appreciated.
It could be helpful to do it in both. It all depends on how probate works in Australia. You likely will have to probate your will in both countries anyway. You will have to probate in the US in whatever state (or states) the assets are located in, and you will likely have to do the same in Australia for the Australian assets.
 

zddoodah

Active Member
Unless you plan on moving away from Louisiana, there's no reason not to get it done there.

One caveat, however: Few, if any, lawyers in Louisiana will be knowledgeable about probate and estate laws in Australia or any Australian state. It might be advisable for your will to contain specific provisions or language to deal with your assets in Australia. For that reason, you probably would want to have an Australian lawyer either work with your lawyer in Louisiana and/or review whatever your Louisiana lawyer prepares.

Out of curiosity, what sorts of assets do you own in Australia, and why do you continue to own them despite having been in Louisiana for however long you've been there?
 

LdiJ

Senior Member
I should also add that I hope you are properly reporting your Australian assets to the IRS. That can cause you difficulty if you are not.
 

zddoodah

Active Member
I should also add that I hope you are properly reporting your Australian assets to the IRS. That can cause you difficulty if you are not.
Why would the OP "report[] [an] asset[] to the IRS"? I have and have had thousands of assets in my life (albeit none in Australia) and have only ever "reported" a couple of them to the IRS, but that reporting was only done in connection with the reporting of income and deductions against such income. Are you suggesting that the IRS has some particular interest in assets located in Australia that are owned by U.S. residents?
 

LdiJ

Senior Member
Why would the OP "report[] [an] asset[] to the IRS"? I have and have had thousands of assets in my life (albeit none in Australia) and have only ever "reported" a couple of them to the IRS, but that reporting was only done in connection with the reporting of income and deductions against such income. Are you suggesting that the IRS has some particular interest in assets located in Australia that are owned by U.S. residents?
Yes, indeed I am specifically stating that. Google "reporting of foreign assets to the IRS" and you will see all kinds of information on the subject. The laws were put in place in order to combat offshore tax avoidance. The penalties are extremely high if you are caught.

Here is an IRS link showing how people can solve the problem of not having previously reported foreign assets:

https://www.irs.gov/individuals/international-taxpayers/options-available-for-u-s-taxpayers-with-undisclosed-foreign-financial-assets
 
Last edited:

NewOrleansSteve

New member
Unless you plan on moving away from Louisiana, there's no reason not to get it done there.

One caveat, however: Few, if any, lawyers in Louisiana will be knowledgeable about probate and estate laws in Australia or any Australian state. It might be advisable for your will to contain specific provisions or language to deal with your assets in Australia. For that reason, you probably would want to have an Australian lawyer either work with your lawyer in Louisiana and/or review whatever your Louisiana lawyer prepares.

Out of curiosity, what sorts of assets do you own in Australia, and why do you continue to own them despite having been in Louisiana for however long you've been there?
I own investment properties in Australia and it makes sense to keep them. I also have shares in a company I founded over there.
 

NewOrleansSteve

New member
Yes, indeed I am specifically stating that. Google "reporting of foreign assets to the IRS" and you will see all kinds of information on the subject. The laws were put in place in order to combat offshore tax avoidance. The penalties are extremely high if you are caught.

Here is an IRS link showing how people can solve the problem of not having previously reported foreign assets:

https://www.irs.gov/individuals/international-taxpayers/options-available-for-u-s-taxpayers-with-undisclosed-foreign-financial-assets
Yes I do report these, I am aware of the issues. I am currently getting some advice as I own shares through a discretionary trust in Australia and am about to sell some which triggers a capital gains event. I am in the process of figuring out the proper country(ies) to pay the tax in. It is complicated and I definitely want to get it right.
 

Taxing Matters

Overtaxed Member
Are you suggesting that the IRS has some particular interest in assets located in Australia that are owned by U.S. residents?
Yes, the IRS does have an interest in such assets because Congress mandated that U.S. persons (as that term is defined in the Code) must report certain foreign financial interests that they have. A foreign citizen that is a resident for U.S. tax purposes is a U.S. person and obligated to comply with those filing requirements. The failure to report those assets when required can result in very large penalties; in some cases amounting to over $100,000 per violation. There are two reporting rerquirements. The first is the FinCen Form 114 that is filed with the U.S. Treasury Financial Crimes Enforcement Network but is enforced by the IRS. The second is Form 8938, which is filed directly with the IRS and enforced by the IRS. The IRS has a handy chart that summarizes the requirements of each and the penalties for failing to comply.
 

Taxing Matters

Overtaxed Member
Yes I do report these, I am aware of the issues. I am currently getting some advice as I own shares through a discretionary trust in Australia and am about to sell some which triggers a capital gains event. I am in the process of figuring out the proper country(ies) to pay the tax in. It is complicated and I definitely want to get it right.
Since you are resident in the U.S. for tax purposes you'll have to report the gain on your U.S. federal income tax return. However, if you also pay an income tax/capital gains tax to Australia for that transaction (and my guess is that you probably will have to do that) you will be able to claim a foreign tax credit on your U.S. return for that. The effect of the credit is that you end up avoiding double taxation on the gain. If the Australian rate of tax on the gain is equal to or greater than the US rate you end up paying no U.S. tax at all. In any event, you still have to report it.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top