While the U.S. is considered by many to be a place where the wealthy move their money away from, there are also many wealthy people from other countries that are moving more of their money into our country. So what’s behind this big increase of foreigners shipping their wealth to the U.S.? America has never really been considered a tax haven, but thanks to an increase demand in multinational estate planning, the country is seeing an unprecedented number of immigrants either keep or shift their money to the U.S.
One of the biggest reasons for this increase is that U.S. tax law has almost completely eliminated estate transfer taxes. As more and more wealthy families from other countries want their children to receive an education in the United States, American colleges and universities continue to see an increase in the number of international students enrolling for classes.
Many of these students come to the U.S. and end up staying here for work, and many of them end up marrying a U.S. citizen. With their children and grandchildren now living in the U.S. many of these wealthy families are choosing to move more money to the U.S. in the form of trusts, which allows them to plan for their families and save on estate taxes.
Additionally, with the number of foreign students enrolled in U.S. educational institutions increasing to a record high of about 975,000 in 2104-2015, this trend is likely to continue.