Does your life embrace more than one country?
Dec 17, 2012 | Our Perspectives Archive
As families seize the opportunities created by globalization and become more international, managing their wealth becomes even more complex.
One indicator—international education—shows how quickly families are “going global.” In 1977, 800,000 students worldwide studied abroad. By 2008, that number had grown to 3.3 million. In 2025, it’s expected to be 8 million. And, of course, when people study abroad, they frequently also meet, marry and settle abroad.1
Education isn’t the only factor drawing people across borders. There are career and investment opportunities. And, there are also second homes: In 2010, foreigners purchased 60% of homes sold in Miami and 64% of homes valued over £5 million sold in London.2
More countries, a tangle of rules
Global families often confront issues when:
- Changing residences temporarily or permanently
- Transferring wealth from one generation to the next across jurisdictions
- Earning income in multiple countries
- Managing investments in multiple countries
- Buying and selling property in various countries
An increasingly demanding global tax environment helps complicate matters further. With rising tax rates, and more assertive tax authorities and compliance regimens, international families often find themselves caught in a maze of conflicting tax issues.
These matters require great sensitivity and expertise to ensure the laws of each country are fully respected, the family does not incur unnecessary tax bills, and risks that might impact the family are not only identified, but also managed well.
Help on a global scale
J.P. Morgan has more than 60 Wealth Advisors situated around the world to help clients and their advisors comply with home-country laws. We also have a special Cross Border Advisory Team that specializes in helping clients manage the complexities created when family members and family money move across national boundaries.
There is a world of opportunity to enjoy. We are honored to help today’s global families make the most of it.
We invite you to contact us and a J.P. Morgan representative will be in touch with you.
1 OECD (2012), Education at a Glance 2012: OECD Indicators, OECD Publishing. http://dx.doi.org/10.1787/eag-2012-en
2 Jackson, Candace. (2011, May 13). The New Global City. The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB1000142405274870373080 4576317150261940990.html