Managing finances across borders? Finding the right collaborators is crucial.

livemint.com:

Receiving an inheritance can be complex, especially if it involves cross-border transfers. Diya (name changed), a 60-year-old woman, found herself in a difficult situation when her father passed away in February 2023. She had dual US and Norway citizenship and an Overseas Citizen of India (OCI) card, and had been living in Norway with her husband for more than seven years. Her parents lived in the US for 20 years before moving back to India during the covid-19 pandemic. 

With her father gone, her 85-year-old mother was living alone in Coorg. This meant Diya had to manage her father's assets in the US while ensuring her mother's financial security in India and securing her own future in Norway.

The very first challenge she faced was tax non-compliance in the US. She and her parents had not filed taxes in the US for at least the past five years. «As US citizens, they were required to file tax returns annually, regardless of whether taxes were owed. The potential for penalties and back taxes created a pressing need to address compliance issues,» said Lovaii Navlakhi, managing director & CEO of International Money Matters (IMMPL), a Sebi-registered investment advisory firm.

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The second challenge was transferring her inheritance. Diya’s father had left behind a residential property in the US, annuities tied to a US address, and individual retirement accounts (IRAs). «With her mother living in India and receiving US social security benefits, managing these assets while adhering to tax laws across three countries — India, the US and Norway — added layers of complexity,» said Navlakhi.

Finally, Diya had her own tax queries. As a resident of