Episode summary
The Top Factors To Consider When A Client Plans To Move Abroad, With Ashley Murphy
Financial Advisor Success (Kitces)
· · 28 min · Hosts: Michael Kitces · Guests: Ashley Murphy
Summary
The episode argues that when a client plans to move abroad, the first question is not how to keep planning, but whether the adviser can continue serving the client at all. Ashley Murphy says the answer depends on the move’s duration and permanence: short-term movers may largely keep their financial center of gravity in the U.S., while indefinite or permanent movers require a much deeper review of tax, compliance, custody, and insurance issues.
Murphy emphasizes that foreign regulatory obligations can arise even if the adviser has no physical presence in the destination country. In his experience, a cross-border relationship can trigger both U.S. and local oversight, and he warns that some countries’ rules are especially burdensome. He also flags major tax traps, including PFIC issues, ongoing U.S. filing requirements, and the fact that foreign retirement systems often do not preserve the same tax advantages Americans expect.
Operationally, the biggest friction points include custodian restrictions and gaps in errors and omissions coverage. Murphy says advisers need enough lead time to map out account eligibility, portfolio structure, and timing issues before the move. His bottom line is that advisers should define their ideal client carefully, because cross-border work can be worth pursuing only when the firm is prepared to serve it well.
Key takeaways
- Ashley Murphy says advisers should first ask whether they can continue the client relationship at all when a client moves abroad.
- Murphy says temporary movers can often stay broadly U.S.-based, but permanent movers require a much more customized tax and compliance plan.
- He warns that a client’s move can create foreign regulatory exposure even if the adviser has no physical presence in that country.
- Murphy says PFIC rules, retirement-account treatment, and ongoing U.S. tax filing obligations can create major hidden costs for clients abroad.
- He says custodian support and E&O coverage are practical deal-breakers that can determine whether an adviser can serve the client safely.
Notable quotes
“you would need to determine can you in fact continue serving that client if they do update it to to that foreign address and sometimes the answer is no”
“there's a tremendous amount to understand when it comes to working with these crossber clients”
“we tend to think of client moves as as falling into one of three time frames”
“the returns to planning are exponential and the more time you give the the better off you'll be”
How the episode opens
You would need to determine can you in fact continue serving that client if they do update it to to that foreign address and sometimes the answer is no.
Hello and welcome back to the Financial Advisor Technician podcast. I'm your host Adam Vanusen. On today's episode we're going to discuss the challenges that advisers face when a client tells them that they are moving abroad.
Because while an adviser's first instinct upon hearing this news might be to consider the financial planning implications of such a move, my guest today suggests that a better first step is to consider whether the adviser should continue serving the client in the first place. Because while there are plenty of planning considerations involved when moving abroad, particularly when it's a long-term or even permanent move, an adviser could face unexpected regulatory scrutiny from the government of their client's new home, challenges managing the client's accounts through their current custodian, and potential issues with their errors and emissions insurance coverage. So to help us dig deeper into this topic, I'm joined today by Ashley Murphy, the co-founder and executive director of the Global Financial Planning Institute and the founder and principal of Arite Wealth Strategist Australia to discuss key questions advisers can ask when a client tells them that they plan to move abroad.
How advisers might reconsider whether the scope of engagement with the client will change as a result of the move and resources adviserss might consider tapping into to help them determine whether and how to continue working with the client. So, welcome Ashley to the Financial Advisor Technician podcast.
It's a pleasure to join you here, Adam. Thank you so much. Yeah, — Terrific. So, to start, perhaps you could begin by explaining broadly why you think it's more important for advisers to first consider whether to continue the client relationship before they get into the weeds uh in terms of how they would like to serve them after a move abroad.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- cross-border planning
- regulatory compliance
- tax traps
- custody restrictions
- errors and omissions insurance
Companies and tickers mentioned
- Global Financial Planning Institute
- Arete Wealth Strategists Australia
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Financial Advisor Success (Kitces), this episode and its artwork belong to Michael Kitces. Octagon is not affiliated with the show; this page is an independent summary.
