Five Cross-Border Wealth Mistakes High-Net-Worth Families Make
Managing wealth across borders introduces unique challenges that even experienced investors can overlook. For UK expats in the US and Americans with UK assets, avoiding these five common mistakes can protect both capital and peace of mind.
1. Failing to Coordinate Advisors
Using separate advisors in each country often leads to conflicting strategies. Coordination between tax, legal, and investment professionals is essential to avoid duplication or gaps.
2. Ignoring Currency Exposure
Exchange rate movements can erode returns if not properly managed. Diversifying holdings and considering hedging options can reduce unwanted volatility.
3. Overlooking US Tax Treatment of UK Assets
From pensions to ISAs, the US treats many UK accounts differently. What is tax-efficient in the UK may not be in the US. Understanding these differences prevents unexpected liabilities.
4. Neglecting Estate Planning Across Jurisdictions
Without coordinated estate planning, families risk exposure to both UK Inheritance Tax and US Estate Tax. A unified plan can ensure assets pass efficiently to the next generation.
After 6 April 2027, most unused pension funds and pension death benefits will be brought into the value of the deceased’s estate for UK Inheritance Tax. The nil-rate band limit is £325,000 per person (£650,000 for couples), and everything above that is taxed at 40%.
5. Waiting Too Long to Seek Cross-Border Advice
Many families delay professional advice until a triggering event occurs, such as retirement or relocation. The earlier you align your strategy, the greater your long-term flexibility.
Cross-border wealth management is complex, but with the right guidance, families can protect and grow their assets with confidence on both sides of the Atlantic.
At BlackPoint Capital Partners, we help high-net-worth families avoid these common pitfalls by coordinating tax, investment, and estate planning across the UK and US. Our goal is to simplify the complex and protect what matters most to you.
Some of the content of this communication was provided by third parties of BlackPoint Capital Partners. We have not verified the information contained herein, but we believe the content is reliable. None of this content should be construed as legal, accounting or tax advice. Tax laws are complex and often have highly-individualized requirements, you should seek the advice of a competent tax professional if you have specific tax questions.
