Pre-Immigration Financial Planning Before Moving to the US
Moving to the United States can change how almost every part of your financial life is taxed, reported and managed.
The best time to review the position is before you move.
Not after your US tax residence has already started.
This may apply if you are:
moving to the United States for work
applying for a green card
entering the US on a long-term visa
moving from the UK to the US
moving from Europe, the UAE, Asia or elsewhere to America
a globally mobile executive
a business owner expanding into the US
a founder relocating personally
a spouse in a US-connected family
a high-net-worth family moving to the US
a trustee, settlor or beneficiary of a trust
someone with UK pensions or SIPPs
someone with ISAs, GIAs or offshore investment bonds
someone with non-US companies or business interests
someone with investment funds outside the United States
someone with foreign property
someone who may leave the US again later
Pre-immigration planning may involve reviewing:
when US tax residence starts
green card status
substantial presence test
state tax residence
worldwide income
foreign pensions
UK pensions
SIPPs
ISAs
GIAs
investment funds
PFIC exposure
offshore bonds
foreign life insurance
foreign trusts
foreign companies
property
capital gains
employer stock
RSUs and options
banking and cash
insurance
wills and estate planning
beneficiaries
currency
liquidity
future exit planning
The question is not only:
What should I do when I move to the US?
The better question is:
What should I fix before US tax residence brings my worldwide assets into scope?
What is pre-immigration financial planning before moving to the US?
Pre-immigration financial planning is the process of reviewing your worldwide financial position before you become US tax resident.
It is relevant because US tax residence can affect:
- worldwide income
- foreign bank accounts
- foreign pensions
- UK pensions
- SIPPs
- ISAs
- GIAs
- non-US investment funds
- offshore bonds
- foreign life insurance
- foreign trusts
- foreign companies
- property
- capital gains
- gifts
- estate planning
- business interests
- employer stock
- RSUs and options
- future exit planning
The IRS says a non-US citizen is generally treated as a US resident alien for tax purposes if they meet either the green card test or the substantial presence test.
The IRS also says resident aliens must report worldwide income.
That is why timing matters.
Actions that may be straightforward before US tax residence can become more complex, taxable or reportable afterwards.
The planning point is simple.
If you are moving to the US, review the structure before the move. Do not wait until you are already inside the US tax system.
What pre-immigration planning issue do you need to review?
US tax residence
Review how the green card test and substantial presence test may bring you into the US tax system.
Moving from the UK
Review UK pensions, ISAs, GIAs, property, trusts and investments before relocating from Britain to America.
Foreign nationals in the US
Review financial planning for foreign nationals living, working, investing or building wealth in the United States.
Green card exit planning
If you may leave the US later, review how green card relinquishment and US exit tax could affect long-term planning.
Pre-immigration planning is about organising your financial life before US tax residence makes restructuring harder.
Who this page is for
Foreign nationals, British expats, executives, business owners, founders, trustees, beneficiaries and internationally mobile families moving to the United States.
Main assets to review
Pensions, SIPPs, ISAs, GIAs, investment funds, offshore bonds, trusts, companies, property, business interests, employer stock, bank accounts, insurance and estate planning documents.
Main planning risks
US worldwide taxation, PFIC exposure, foreign trust reporting, foreign company reporting, foreign pension issues, state tax, estate tax mismatch, account restrictions and currency risk.
Common trigger points
Green card approval, US job relocation, founder move, executive assignment, marriage, school move, property purchase, business expansion or repeated US travel.
Planning outcome
A clearer pre-move plan for tax residence, investments, pensions, trusts, companies, property, estate planning, banking, insurance, currency and future exit.
The pre-immigration financial planning checklist
Pre-immigration planning is most valuable before US tax residence starts.
The objective is to identify what should be kept, sold, simplified, documented, restructured or reviewed before the move.
1. Confirm when US tax residence may start
Start with the date.
US tax residence may begin because of:
- green card status
- substantial presence
- first-year election
- spouse status
- treaty position
- days spent in the US
- payroll start date
- US workdays
- long-term relocation
- family relocation
- intention to remain
The date matters because it can affect which assets are inside the US tax system and when income or gains are recognised.
2. Review your destination state
Federal US tax is only one layer.
State tax can be just as important.
Review:
- destination state
- state income tax
- capital gains tax
- estate tax
- domicile rules
- payroll withholding
- remote work
- property plans
- business interests
- investment income
- retirement income
- future state moves
Moving to Texas, Florida, New York or California can create very different planning outcomes.
3. Review foreign investment funds
Foreign investment funds should be reviewed before US residence begins.
This can include:
- OEICs
- unit trusts
- ETFs outside the United States
- investment funds in ISAs
- investment funds in GIAs
- offshore funds
- certain investment-linked products
- fund portfolios inside wrappers
- accumulated gains
- dividend reinvestment plans
The IRS says a US person that is a direct or indirect shareholder of a passive foreign investment company may need to file Form 8621.
This is why PFIC exposure is one of the key pre-immigration planning issues.
4. Review ISAs and GIAs
UK ISAs and GIAs can be a major issue for people moving from the UK to the US.
An ISA may remain tax-efficient in the UK, but it is not automatically tax-free for US tax purposes.
Review:
- Stocks and Shares ISAs
- Cash ISAs
- Lifetime ISAs
- Junior ISAs
- GIAs
- OEICs
- unit trusts
- investment trusts
- ETFs
- individual shares
- accumulated gains
- income
- provider access
- future tax reporting
- whether assets should be sold, retained or restructured before the move
5. Review pensions
Foreign pensions should be reviewed before US residence starts.
This may include:
- UK workplace pensions
- SIPPs
- defined benefit pensions
- defined contribution pensions
- QROPS
- overseas employer pensions
- end-of-service gratuities
- foreign retirement schemes
- pension consolidation decisions
- planned contributions
- planned withdrawals
Review:
- US tax treatment
- treaty treatment
- investment holdings
- contribution plans
- employer contributions
- rollover or transfer options
- provider access
- future withdrawal strategy
- currency
- beneficiaries
Pension decisions should not be rushed, but they should be reviewed before the move.
6. Review offshore bonds and foreign life insurance
Offshore investment bonds and foreign life insurance policies can become complex for US taxpayers.
Review:
- policy type
- ownership
- insured life
- investment funds
- withdrawal rules
- surrender value
- gains
- charges
- tax reporting
- insurance classification
- beneficiary structure
- estate planning role
- whether surrender, retention or restructure should be considered
Specialist tax advice is essential before taking action.
7. Review foreign trusts
Trusts can become especially complex once a person becomes US tax resident.
The IRS says information reporting rules can apply where a US person enters into a transaction with a foreign trust, is treated as an owner of a foreign trust, or receives distributions from a foreign trust.
Before moving, review:
- settlor status
- trustee status
- beneficiary status
- protector powers
- distributions
- loans
- trust assets
- trust residence
- family members
- letters of wishes
- reporting obligations
- estate planning role
- whether changes should be made before US residence starts
This is a specialist area and should be reviewed with a qualified tax adviser.
8. Review foreign companies and business interests
US tax residence can create reporting and tax issues for non-US companies and business interests.
Review:
- company ownership
- directorships
- control
- retained profits
- dividends
- shareholder loans
- partnerships
- LLPs
- carried interest
- founder shares
- stock options
- intellectual property
- foreign company reporting
- exit or sale plans
- payroll and employment status
Business owners and founders should usually review this early.
9. Review property and capital gains
Property should be reviewed before moving to the US.
This may include:
- main residence
- rental property
- holiday homes
- investment property
- property held through companies
- large unrealised gains
- mortgage arrangements
- rental income
- sale plans
- local tax
- US tax
- state tax
- currency
- estate planning
A gain that is manageable before the move can become more complicated after US tax residence begins.
10. Review estate planning
Becoming US tax resident can affect estate planning.
Review:
- wills
- trusts
- powers of attorney
- guardianship
- beneficiary forms
- life insurance nominations
- pension nominations
- non-US spouse planning
- US estate tax
- state estate tax
- local inheritance tax
- foreign property
- US property
- liquidity
- future exit
Estate planning should be coordinated across countries, not handled as separate local documents.
11. Review banking and account access
Before moving, review:
- local bank accounts
- US bank accounts
- investment platforms
- pension providers
- insurance providers
- mailing addresses
- tax forms
- FATCA classification
- account restrictions
- currency transfers
- emergency cash
- credit history
- mortgage plans
- card access
Some providers may restrict clients once they become US resident.
Others may require updated tax forms or US documentation.
12. Review future exit from the US
Many moves to the US are not permanent.
Before entering, consider whether you may later:
- leave the US
- return to the UK
- move to the UAE
- move to Europe
- become a green card holder
- relinquish a green card
- trigger long-term resident planning
- retain US property
- keep US retirement accounts
- leave assets to non-US beneficiaries
A good pre-immigration plan should consider the entry and the exit.
Documents to gather before a pre-immigration planning review
Immigration and move details
Gather visa details, green card status, expected arrival date, employment start date, destination state, spouse details and family relocation timeline.
Tax records
Collect recent tax returns in your current country, previous US tax returns if any, state tax records and advice already received.
Pension records
Gather UK pension, SIPP, defined benefit, defined contribution, workplace pension, foreign pension and retirement scheme statements.
Investment account statements
Collect ISA, GIA, brokerage, platform, offshore bond, investment-linked insurance, mutual fund, ETF and portfolio statements.
Trust documents
Gather trust deeds, letters of wishes, trustee records, distribution history, loan records, beneficiary details and any tax advice on the trust.
Company and business records
Collect company accounts, shareholder registers, partnership agreements, founder share records, option documents, business valuations and ownership details.
Property records
Gather property ownership records, mortgage statements, rental income records, property valuations, sale plans and capital gains history.
Insurance documents
Collect life insurance, income protection, critical illness, disability, health cover, offshore bond and foreign life insurance policy documents.
Estate planning documents
Review wills, powers of attorney, guardianship documents, beneficiary forms, pension nominations, letters of wishes and inheritance planning advice.
Future exit assumptions
Clarify whether you expect to remain in the US, return to your home country, move again, seek a green card, relinquish a green card later or retire elsewhere.
These related pages cover the wider US tax residency, UK-to-US relocation, foreign national, green card and US asset planning issues around pre-immigration planning.
US tax residence
Review how the green card test and substantial presence test may bring you into the US tax system.
UK to US move
Review UK pensions, ISAs, GIAs, property, trusts and investments before moving from the UK to the United States.
Foreign nationals in the US
Review financial planning for foreign nationals living, working, investing or building wealth in the United States.
US property
Review US property, US-situs assets, estate tax, FIRPTA and succession planning for foreign nationals.
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Pre-immigration financial planning before moving to the US FAQs
Important information
This page is for general information only and does not constitute personalised financial, tax, legal, immigration, residence, domicile, pension, retirement, investment, estate planning, insurance, trust, company, US tax, state tax, local tax or currency advice.
Pre-immigration planning, US tax residence, the green card test, substantial presence test, resident alien status, state tax, foreign pensions, UK pensions, ISAs, GIAs, PFICs, offshore bonds, foreign life insurance, foreign trusts, foreign companies, property, estate planning, withholding, reporting, local tax, currency and future exit depend on personal circumstances and may change.
US tax advice should be taken from a suitably qualified US tax adviser or CPA.
US immigration advice should be taken from a qualified immigration lawyer where relevant.
State tax, local tax, legal, pension, investment, trust, company and estate planning advice should also be taken where relevant.
Financial planning should be coordinated with tax, legal, immigration, investment, retirement and estate planning advice where appropriate.
Do not move, sell, transfer, contribute, withdraw, restructure or reinvest assets before reviewing whether US tax residence, state tax residence or foreign reporting rules may apply.
Investing involves risk. Investment, pension and retirement account values can fall as well as rise, and you may get back less than you invest.
Currency movements can affect investments, pensions, retirement accounts, property, tax liabilities, income and future spending.
