Q581. Moving to USA from India

after retirement | Seniors moving

abroad

Question: I saw your website and find it very helpful. Request kindly enlighten me on the following: 1.My two sons(married) are now green card holders of USA, and soon they may get US citizen ship also. They want us (me and my wife), to apply for US citizen ship, and settle in USA. Kindly inform the medical facilities available to US citizens like me(63 years) and my wife(59 years).I retired from a senior position in a PSU in India, and me and my wife are eligible for free medical facilities from my company during our atay in india. After me and my wife take US citizenship, and if me and my visit India, shall we be still elegible for fee mediacl faclities by my PSU during our stay in Inda? 2. Me and my wife hold residencial property in India, along with some bank balance to lead our retired life. Shall we have to sell these assets on becoming US citizen, or, we can keep these assets in India, and earn rental income and interest, and use the same for our stay at USA? 3.On our death, how our asssets in India, can be transferred to our Sons at USA, and what shall be the Tax liabilities on such transfer? 4. can our sons, after our death, if they so wish, continue their so aquired inherited assets to keep in India, and earn the rental and interest income for their use in USA? 5.If we want to giflt periodaiclly some cash/assets to our sons or their children, from India,during we are alive, how we can do that, and the tax obligations of doing so? With kind regards Answer: For you and your wife to apply for US citizenship, your son would first have to sponsor you for a green card. Only after getting a green card, an application for citizenship can be made. However, as your sons are not US citizens and live in the United States as Green card holders, they cannot petition to bring parents to live permanently in the United States until they become US citizens. Regarding your questions: • Medical facilities available to US Citizens are excellent provided they are covered for medical insurance and can afford to pay any copays or insurance premiums applicable to continue their coverage. Thousands of Americans do not have any type of insurance as they cannot afford premiums. Some with medical insurance also, think twice before going to see doctors unless it’s really necessary as each trip despite having medical insurance requires a copay deductible payment from the insured. o Medical insurance premiums for visitors to USA is very high and gets pricer with age. Expect to pay over a thousand dollars a month for a minimum amount of limited medical insurance as you are over 60 years of age. After age 70 it becomes more difficult! o Whether your previous employer will cover your medical costs during your visits to India after you acquire US citizenship and start living in USA can only be answered by your previous employers insurance provider in India. You should verify with them. • You and your wife can continue to hold assets you currently have in India after becoming US citizens. You can earn rental income and interest in India. However, as a US resident or citizen, your worldwide income becomes taxable in the United States but some relief will be available through the India/USA double tax avoidance agreement. • No inheritance or gift tax is levied in India and there is no U.S. federal tax on inheritances. In case the inheritance is valued at more than $100,000 your children will have to report this to the U.S. Tax authorities (IRS) by filling Form 3520. • Your children can continue to hold and rent inherited assets in India. • From India you can send periodic gifts to your children (as per applicable RBI/FEMA rules) and there are no major tax liabilities on both sides. Since you have retired from a senior post and probably lived in an independent style in India with the luxury of servants to help, you may find life in USA quite different, unless you have a lot of money. Perhaps a trial visit of about four to six months should be considered before you make a permanent move. If you have the time, please do read my article on this website for seniors moving abroad by clicking the following link: http://nriinformation.com/articles3/parents.htm