Taxation attorney Kevin Packman discusses receiving calls from foreign clients with concerns about the Panama papers fallout and what it could mean for them in their home countries. Mr. Packman disagrees with the claim that there is something constitutionally egregious about foreigners launching businesses to buy Miami real estate.
"If a foreign person wants to buy U.S. real estate and they get advice from any competent U.S. adviser, they are going to be told to take title in an entity to avoid U.S. estate tax. Similarly, if that same foreign person wants to invest with JPMorgan or Goldman Sachs, they are going to have their portfolio held by a foreign entity. If a foreign person dies owning a portfolio, all U.S. securities held in that portfolio are subject to estate tax. If they hold the portfolio through the foreign company, there's no U.S. estate tax when they die. Those are very valid reasons."
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