Bermuda flag on traveling mobile person suitcase

 

 

 

BERMUDA RESIDENTS:

 

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Copyright  2000 - 2015   All Rights Reserved Martha Harris Myron and the Pondstraddler Life™ Consultancy

 

 

Bermuda Residents Live the PCREATOR: gd-jpeg v1.0 (using IJG JPEG v62), quality = 90 ndStraddler* Life™

*Pondstraddler - A  person with one foot on each shore whose heart resides in both countries*

 

Bermuda Residents are Perennial Pondstraddlers. We have uniquely sophisticated lifestyles.

 

Where are we? Remote, beautiful, Bermuda Island Living instills independence, determination, and flexibility - qualities derived from surviving and thriving on a tiny dot of an extinct volcano fed by the warm Gulf Stream in the middle of the North Atlantic Ocean - the fourth most remote habitat in the world.

 

Who are we? Adventurous and innovative far beyond Bermuda’s limited population size, our Bermudian forebears and now contemporaries ventured aggressively into the outer spheres of global commerce for sheer economic survival: pioneer builders of the fast rake-masted Bermoode rig sloop that dominated the sailing world in the seventeenth century; aided large young countries in domestic strife and world wars; established an export food production business to the Eastern seaboard, northward, and south to the Caribbean; then, reinvented ourselves again as a tourist destination and currently, as the premier offshore financial risk centre.

 

Today, the Modern Bermuda International Finance Centre is the third largest global (Re)insurance capital in the world, along with being the largest captive insurance market, investment funds, maritime shipping commerce, and trust administration in international commerce.

Why are we Bermuda islanders perennial pondstraddlers?

Bermudians must Physically leave the island shores to go anywhere: by air transport, ship, or swimming (actually just a bit too far) since we are situated some 640 miles west - north west to the nearest very large landfall, Cape Hatteras Outer Banks, North Carolina, the United States of America.

All Bermudians migrated from other origins. We derive from and thrive with globally connected families, businesses, and financial interchange.

 

Thousands of Bermuda residents have more than one passport, nor is ownership of more than one citizenship status limited to the Bermuda population when reviewing the current global migratory statistics on MultiNationals on the Move.

Fact: the author as seen individuals with up to five legitimate passports.

 

We, in Bermuda, encompass a population of many nationalities, all of whom whether global career professionals, finance and risk management executives, hospitality and related foreign service expatriate personnel, migrant construction / agricultural workers, multi-national retirees, or Bermuda families with centuries of years-lineage, have multiple connections and provenances to elsewhere.

 

A family may appear to be purely Bermudian nationals only, domestically situated, but this family scenario may be idealistic. The Reality of the family picture may be far different. Generations of families have grown, migrated abroad, and returned to Bermuda, changing their entire family structure, irrevocably. Domestic families, with four hundred year old Bermudian family ancestral lineage, now have international relatives, assets, and business interests.

 

The development of these new personal and financial relationships are almost never fully integrated with the regulatory or taxing regimes of more than one country. For instance, a multinational family may be inadvertently doubly taxed or legally constrained from employment or business because the family stepped-out of compliance with residency regulations in more than one jurisdiction.

 

Every border crossing then, represents a potential opportunity for inadvertent, or unaware transgression into another country’s legal, tax, financial, or regulatory regime engendering consequences that could be very serious, indeed, such as denial of re-entry.

 

Today, Bermuda Families cannot plan complacently as was done in the past if they wish to continue to build, maintain and preserve their businesses and assets for the future while traversing the globe.

 

Cross border financial planning is a very necessary process in this globally mobile environment. The compound complexity of legal, tax planning compliance, immigration, and finance regulations for one, two or even more jurisdictions cannot be managed with a one-dimensional generic financial planning approach.

 

 

MULTINATIONALS
On The MOVE

 

 

Cross Border Consequences -
The Financial Complexity of the Pondstraddler* Life™

 

 

Are you are Pondstraddler? TAKE the Quiz

 

 

The PondSTraddler* Life Consultancy: Bermuda

 

 

Bermuda Pondstraddlers* (like their counterparts across the globe) have multiple complex financial, immigration, tax and personal relationship planning challenges that the rest of us one-dimensional jurisdiction residents cannot begin to understand.

 

The following composite cases demonstrate the internationally complicated lives of Pondstraddler families. Most often these cases involve complexities within / without the United States, but they just as easily can be involved with the United Kingdom, Canada, France, Germany (other EU countries), the Caribbean and elsewhere.

 

Accidental American
I am a 58-year old Bermudian and have lived here all my life. My deceased mother was Bermudian. I never knew my United States father as he died soon after my birth. Recently, out of the blue, a legacy notice arrived from my late US grandfather’s estate. The US attorney executor claims that I must declare US citizenship and provide proof in order to receive the bequest. I am devastated; I don’t know any more who I am, or how to even begin to resolve this extremely upsetting situation.

 

Inadvertent Canadian resident subject to Canadian taxation through facts and circumstances?
My spouse is Canadian, I am Bermudian. We have always lived overseas, but have a “vacation” cottage in Canada. We enjoy it so much that now we are retired, we sometimes stay seven or eight months in a year. Recently, my spouse decided to purchase Canadian health insurance because it is cheaper, and wants to put me on the policy.

 

2015-2016 UK Budget changes for UK Non-domiciliaries and investment property taxation increases
We are both UK citizens, considered non-domiciled – been out of the UK more than thirty years. We own leased UK property held in a foreign company. Eldercare responsibilities are pending, too, so looks like we will be spending a lot more time in jolly England, but not on a permanent basis. Our accountant says we have to do some significant planning in our domicile and property ownership structure.

 

Controlled Foreign Corporation, possible PFIC regulations, and Multi-country Estate Planning for a Multinational couple
I am US/Bermudian married to a French spouse. He had no rights to Bermuda ownership (of anything) when we started our retail store company, so I own 100% of the business. He is estranged from his French children from a first marriage. We know we need all sorts of help because of my US citizenship, the differences in common law regulations in Bermuda and French civil law. I am particularly concerned about our estate planning as there is no way I will allow his children to automatically inherit our property and the business that I built. These concerns are affecting our relationship.

 

Foreign non-grantor trusts with US beneficiaries?
I live in the UK, but I'm also Bermudian and a dual-national with the US, too. Just recently found out that my Bermudian grandmother long ago settled a trust and I am a beneficiary. She died and now the trustees are pushing me to disclose who I am and file some sort of a forms down there before they distribute any money – which I had no idea I was getting. They say I have to report these distributions. I honestly don’t understand what I am supposed to do, one accountant I talked to could not help me.

 

FATCA Problems for non-US citizen?
I am a local Bermudian / US person and caretaker for my Bermudian father and his sister. I have Power of Attorney on all their accounts. They are getting all kinds of letters from their local bank wanting them to “attest” that they are not
US citizens. Needless to say, they are very upset.

 

US citizen, settler and protector of a foreign grantor trust.

I came to Bermuda from the United States on a work permit five years ago; just married a wonderful lady (Canadian / Bermudian). Our plan is to purchase Bermuda real estate for investment purposes. My spouse and I want to settle a Bermuda trust to hold the property and keep the income non-taxable offshore as we are both considering job offers in Canada. We think this will work for our financial planning.

 

US Green card in-bound immigration planning.

We wanted to go to the US for years, and finally got the chance with our employer. As soon as we were able, we were sponsored for US green cards. We left pensions, life insurance, and real estate in our home country. We’ve just sold the real estate for a tidy profit, but we should not owe any US taxes since we owned it before we got green cards.

 

Non-qualified Foreign pensions
I’ve lived and worked abroad in foreign countries for many years, accumulating a couple of pensions along the way. Now, I’m retiring back to the US and want to roll my pensions to an individual retirement account. They tell me that is not possible, plus something about windfalls. I wish I did have a windfall; my pensions are all I have accumulated.

 
The author, Martha Harris Myron, was born on the remote island of Bermuda at a time of tourist filled activity, and parochial economics, all filtered with quiet, picturesque, elegant, and sun-filled sea-sparkling charm. The Bermuda of today only vaguely resembles those earlier times. See Bermuda economy.

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She lives the Cross Border Life and the experiences of a multi-national family offshore as a perennial pondstraddler.* She consults and has written extensively for more than seventeen years on the Bermuda financial planning environment for domestic islanders as well as the challenging international tax and financial issues for Bermuda residents with international businesses and multinational families and connected on the Pond - the North Atlantic Quadrangle of the United States, Canada, United Kingdom, Bermuda, and Europe.

 

Source: To Disregard or Not, That is the Question?

The Unequal Business Path to Global Mobility. Comparing and Contrasting the International Business Expansion Decision Making Process, Including the Use of Disregarded Entities Between A Domestic United States Corporation with Contemplated Foreign Operations And A Dual-Citizen (of United States/Bermuda) Permanently Resident Abroad and the Principal Owner of a Foreign Business.

Thesis by Martha Harris Myron, CPA PFS JSM: Masters of Law in International Taxation and Financial Services.

 

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© Copyright  2000 - 2015  All Rights Reserved Martha Harris Myron and Pondstraddler Life™ Consultancy 

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