<p>I am executor for my mom’s estate, and we have a family challenge with the distribution of the financial assets. One of my brothers has not lived in the US since the mid-80s. In fact, he holds dual citizenship in US and country #2. About 5 years ago, he was ‘early retired’ from his job in country #2 and now lives and does consulting work in country #3. He has maintained country #2 as his legal residence, as he collects retirement and has assets there. Now brother is inheriting some significant investments from my mom, which he would like to keep at the same large investment firm where they are currently held in the US. This is presenting a challenge, as this investment firm is requiring documentation of income/asset levels in country #2 that brother doesn’t have and the firm considers country #3 a blocked country, as brother was considering changing his legal residency to country #3. </p>
<p>Of note, my brother has investments at a different large investment firm in the US, so transferring the inheritance to that firm should be an option. Brother previously used my mom’s address for mailings from this firm, and he now uses my address. I don’t know why this investment firm hasn’t challenged his residency, but it could be that the accounts were set up prior to 9/11, when less documentation was required. </p>
<p>It’s looking like brother’s best option might be to reestablish legal residency in the US, but my internet searching has not yielded an answer as to what is required to do that. Brother had planned to return to live the US at some point, maybe 5-10 years from now. He would almost certainly do that in a different state from where I live. Would getting a US credit card billed to my address be enough to prove US residency? It has been suggested that he do that so he can begin to establish a credit record in the US again.</p>
<p>Does anyone here have any sound advice on how best to sort through this?</p>
<p>There are tax firms, and CPA’s who specialize is issues dealing with ex-pats. Dont’ YOU try to figure this out. He should. He sounds financially savvy enough. Make sure he isn’t using your naivete for any other purposes.</p>
<p>Here’s what the Social Security website says about U.S. residency:</p>
<p>U.S. residency is usually demonstrated by evidence that indicates the individual is an active participant in the U.S. community where he/she resides, with a strong economic and social attachment to the U.S.</p>
<p>Further:</p>
<p>If after establishing U.S. residency, the beneficiary moves to another country, he/she cannot still be considered a U.S. resident, unless development establishes that the individual is actually maintaining U.S. residency. This is true even if he/she returns to the U.S. one or more days monthly to visit. A person cannot establish residency in two places at the same time.</p>
<p>Sounds to me like getting a U.S. credit card billed to your address would not be sufficient to establish U.S. residency, although it could help him establish a credit record in the U.S.</p>
<p>I would talk to a lawyer or a CPA or some other expert who has dealt with this issue. As snugapug said, don’t try to do this on your own, or rely on the advice of people who are well intentioned but haven’t no direct experience doing this. Good luck!</p>
<p>In addition to all the above, you need help from experts in the country your brother had establish residency, as it might be very complicated when international laws are involved.</p>
<p>cincy gal, the advice to seek the help of professionals is wise. There are definitely accountants and lawyers who specialize in this type of situation. Presumably, your brother has been filing U.S. tax returns all these years he’s been living elsewhere, so whomever has done that for him should be a good place to start.</p>
<p>I am not at all clear as to why the investment firm is insisting that a US citizen who has been living abroad for umpteen years needs to establish residency in the US? There are lots of people in that situation!</p>
<p>Don’t tell them that he is dual status, it will just confuse them. He is a US citizen plain and simple. The dual status bit only comes into play when he is dealing with the government of his other country.</p>
<p>If the accounts that he has are old, if they are updating their records, or he is opening a new account, yes they may need more recent proof that he is a US person and can have an account here. His US passport should be evidence enough. </p>
<p>Frankly, if they are pests, I say close the account and move on.</p>