Category Archives: Expat Issues

Relocation & Expat Resources – Expat Issues. Information, Inspiration, How-To Guides and Tools for Trailing Spouses, Accompanying Partners, and Families in Transition and

Expat family essentials: Estate planning checklist. Defining Moves: information, inspiration for the global expat family. Trailing spouse, supporting partner, expat partner, accompanying partner, international assignment

Expat Family Essentials: The Estate Planning Checklist

Expat family essentials: Estate planning checklist. Defining Moves: information, inspiration for the global expat family.  Trailing spouse, supporting partner, expat partner, accompanying partner, international assignmentWhen my mother came to visit us in Los Angeles, she neglected to bring her swimsuit, and was faced with the challenge of what to wear in our pool. My generous offer of a string bikini was rudely rejected with the words “Over my dead body”. I am taking her at her word, and when she moves on to a better place, we will be marking her passing with an open casket viewing and the aforementioned attire.

Just to compound your already low opinion of me, I also respond to unwanted maternal points for improvement with the words “ Just remember who’ll be choosing the nursing home”…

Let this be a lesson to those of you who are feeling complacent having written your will; if you also want a say in your care and send off, do in it writing, and make sure it can be found before the services (healthcare, financial or spiritual) have taken place. It applies to all of you, but if you are an expat, the risks are even higher..

 

There are four more documents that you need to consider preparing:

  • Guidelines for your funeral arrangements
  • Power of Attorney
  • Trust / Catalogue of assets
  • Letter of intent

Funeral arrangements. 

If, like myself, you have specific ideas about your funeral, you need to put a plan in place so that loved ones left behind can honor your wishes. For those of us with a somewhat warped sense of humor, it’s a great time to mess with everyone a little, but I appreciate that not everyone out there is as cruel as I.

The key points to cover include:

Location for service (church, crematorium etc.), preference for cremation or burial, memorial service, storage / distribution of ashes, etc.

Funeral preferences – hymns, caskets, flowers, donations, clothing (yours, but feel free to have a little fun with their dress code too…). You could even write your own eulogy and obituary, complete with an embellished (and  potentially wholly fictitious) list of accomplishments.

Funding – it’s the one we all forget, but if you are living overseas and wish to be buried in your home town, make provision for the costs of repatriating both your body and your family. Your embassy can give guidance, but the costs are entirely your own. Bear in mind that your heirs can’t easily access accounts left in your name once you have died – funeral expenses are deducted from the estate before it is divided between the beneficiaries, but flights etc are usually paid in advance, so ask your lawyer the best way to facilitate this.

Power of Attorney.

The Durable Power of Attorney / Enduring Power of Attorney is a document that designates a representative to make financial, health care, or other business decisions for you if you become unable to do so for yourself.

This can be general or limited / springing. A general durable power of attorney gives permission for whomever you name to make every decision on your behalf, if you are no longer able to advocate for yourself. A limited durable power of attorney cover specific events, like selling property, making investments (often given to financial advisors / brokers) or making health care decisions (also called an Advance Directive of Health Care).

You can choose anyone to act as your agent, but commonsense rules apply – choose someone trustworthy who has your best interests at heart, and who is physically able to make those decisions; while many decisions can be made remotely, those living overseas should consider choosing someone who is able to travel.

Trust.

I am not a lawyer, nor have any legal expertise or qualification, so I am leaving the explanation of what exactly a trust is to those in the know – click here for the best explanation I could find, or check out the additional resources at the bottom of the page. Your task is to go away and get legal advice on whether trusts are applicable to your situation.

Simply put, a trust is a legal holding zone for assets, which are controlled by individuals known as ‘trustees’, for the benefit of other named parties “beneficiaries”. You nominate multiple trustees and beneficiaries, allowing both flexibility (it is relatively straightforward to change the conditions of the trust) and smooth transition of both control of and benefit from the trust.

The vast majority of people set up trusts for financial reasons – properly crafted, your trust can help to avoid significant estate taxes. However, for expats, the ability for assets to be transferred seamlessly is often far more important; especially where the remaining spouse is on a dependent visa and no longer legally entitled to remain in the host country.

It also has the advantage not just cataloging major assets but also specifying how beneficiaries can access the funds contained in the trust, meaning that should the unthinkable happen and both parents die, they can leave instructions for funds to be released at appropriate intervals (for example, lump sums to cover college tuition and living costs, down payments on a first home etc) rather than giving total control when the children reach legal adulthood.. As someone with a 17 year old who is unable to manage his birthday money effectively, the thought of leaving him in charge of half our net worth in a year’s time sends shudders down my spine.

Letter of Intent.

Finally, it’s the easy one – your letter of intent. It’s not a legal document, instead simply some guidance to the guardians of your estate and your dependents about what your wishes, your hopes and your future plans for your dependents are.

There are two things to bear in mind:

  1. Think of your letter of intent as a set of guidelines, not rules. You are handing over the job to someone who is not you (and never will be), so let them do their best with the situation they have; if there are any ‘dealbreakers’, it’s probably a good idea to discuss them in person before you assign them the responsibility.
  2. Make sure you have the funds to back it up. There’s nothing like being left with a laundry list of expectations, and no money to do it. It’s the same lesson we teach our children; if it’s that important, you should be willing to pay for it with your own money..
  3. Don’t assume children are your only dependents; you may need to make provision for your parents, your pets or your clients.

So there we go – you are well on the way to getting your plans a little more ‘future-proofed’, whether in terms of money, care for your dependents, or what they say about you in your obituary. Just remember; your epitaph really is the one thing that is written in stone…

 

Expat Success - Make your mistakes quickly. Defining Moves - The Art of Successful Relocation. Information, inspiration and resources for the global trailing spouse, accompanying partner, international assignment, expat family, expatriate

The Secret to Expat Success… And Why.

Expat Success - Make your mistakes quickly. Defining Moves - The Art of Successful Relocation. Information, inspiration and resources for the global trailing spouse, accompanying partner, international assignment, expat family, expatriate

 

 

I knew it. Finally, the insanity that is my expat life – and most of the website – has been vindicated, and it’s all thanks to Ellen Mahoney over at Sea Change Mentoring. She introduced me to the groundbreaking advice given by a tech start-up entrepreneur, as a recipe for global success and world domination…

 

Make your mistakes quickly

 

As a person whose family motto is “Disaster soon follows”, I have long been a proponent of this approach, with no idea that I was such thought leader. I had just assumed I was incompetent and (in a rare moment of self-acceptance) decided not to fight it. It’s a phrase that could be part of every expat mission statement, and should probably replace a lot of the well intentioned advice given in the all-too-brief briefing sessions; “learn the language”, “ get out and make friends” and my personal favorite “ join a gym”… Hmmm. Instead, the secret to expat success is familiar and effortlessly achievable – the global gaffe. And here’s why.

 

1. It reminds us that we will make mistakes.

In the assignment planning stage, it’s important to focus on the positive, but in doing so we often forget that expat life is still life. Mistakes happen, and when you are in an environment with unfamiliar language, culture, rules and expectations, they happen a lot. Making your mistakes quickly reminds us to expect – and even plan – for those mistakes. Whether that means working with a destination service provider or an expat coach, doing your own exhaustive research or simply being patient with yourself while you transition (or all of the above), it’s vital to acknowledge that perfection is impossible, and good enough is, well, good enough.

 

2. We focus on ‘right’ as a victory, rather than ‘wrong’ as a failure.

I once did a stint as a sales consultant and one of the job requirements was calling customers to set appointments. It was (and no doubt, still is) a miserable task –  you knew that your cheerful introduction could be greeted with anything from interest, to polite refusal, to a torrent of abuse and a dial tone. Thankfully, I was armed with a secret weapon; the company set targets for calls made, and let the actual results take care of themselves. So every call made was a relief – one less to do, one step closer to reaching the goal. Acknowledging that mistakes are inevitable (and in the early days, we are more likely to get it wrong than get it right) is incredibly freeing. It gives us permission to focus on the actions and let the outcomes take care of themselves. It prepares us for failure, and when things do go right, we get to stop, acknowledge it for the triumph that it is, and celebrate.

 

 3. It gets you out there.

Having taken away the fear of failure, there’s nothing like the element of competition to spur us on. Experienced expats (i.e. those who have been comprehensive in their cock-ups) can entertain for hours with hilarious stories of endless mishaps, miscommunications or general disasters; just visit the bar at any FIGT conference and listen for the raucous laughter if you don’t believe me. It’s the expat version of the Olympic Decathlon, with extra points for speed, style and variety. All that’s missing is the opening ceremony, the national uniforms and the lycra. But don’t let us stop you…

 

4. It helps you to bond.

If there’s one thing that unites the expat world, it’s our inability to watch people struggle without feeling some serious empathy. It’s one of the unwritten laws of expat life; we’re all in this together, and in my mind, there is a special place in Hell for expats who don’t help each other. Putting yourself out there and making mistakes publicly transports us all back to our early days and disasters, and gives us something in common that transcends language, culture or belief. It reminds us that we are human, and we love you for it.

 

5. It makes you brave.

Fear of failure is crippling, and stops us doing so many things that would take ordinary life and make it extraordinary. By contrast, being forced into situations where mistakes are inevitable and accepting them as a mere part of life’s journey gives us the motivation to be creative, to take risks and to try new things constantly. We dream big, and even if it doesn’t work out perfectly, we don’t go home. We learn that it hasn’t killed us, and we are really are stronger.

 

So there you have it – official permission to create chaos and have fun doing it. Providing of course, you follow our lead and share all your finer moments. Now we just need merit badges and an awards ceremony…

Expat essentials. Writing a will. Defining Moves - The Art of Successful relocation. Information, inspiration and resources for the global expat family, trailing spouse, accompanying partner, global services manager, relocation service provider, destinations service provider.. you get the picture.

(Often Ignored) Expat Essentials – Writing a Will.

Yes, I know. You don’t want to think about it, much less talk about it, which is why I have been getting shifty looks from most of my expat network this week when I asked them the seemingly simple question: “Do you have a will?” Want to know how many people said “Yes”?

Two. Out of about thirty people, all of whom have high net worth, children from at least one relationship, and often dual citizenship / resident status. A little worrying, no? 

I can’t claim the moral high ground – we recently unearthed our Will, dusty from 10 years in an unmarked cardboard box in a storage container in Walthamstow. Not exactly accessible in the event of our demise, and even worse, was so out of date that the paperclip holding it together was rusty and the Feisty One was not even mentioned. So on her behalf, I am doing something about it… Here goes.

Expat essentials. Writing a will. Defining Moves - The Art of Successful relocation. Information, inspiration and resources for the global expat family, trailing spouse, accompanying partner, global services manager, relocation service provider, destinations service provider.. you get the picture. I have a new dirty word: intestate. For those of you who have been living a carefree life of blissful indifference, it’s what happens when you don’t have a will. For non-expats, the implications are unpleasant: it gives the state responsibility and control over the division of your estate, decisions about who will take care of your dependents, the timeframe it all happens and (of course) access to a large chunk of your assets via taxes.

It’s a simple fix – a Will. It’s the document that tells those left behind what you want to happen to your dependents and estate.  Most of us overthink it, imagining a torturous process requiring three weeks of desperate hunting for title deeds and old bank statements. Nothing could be further from the truth – the best wills are simple statements of intent, which give executors something to work with and a few clues about where you have hidden your treasure. Combine that with a good estate planning lawyer and you will create a plan that saves everyone time, money and heartache at a time when they are most vulnerable.

Introducing first part of the Defining Moves “Ducks in a Row” program. Our aims are simple:

  • To inspire you to act. Right now. Because this is important.
  • To get you to the lawyer on time. We want to prompt to you think, discuss, list and plan, so that any legal advice you get is based on reality, not just the bits you could remember in the car on the way to the lawyer’s office. And make sure that when whoever prepares your will asks a question, you know the answer and are not paying $300 per hour for them to watch you think about it / argue with your spouse / try to remember whether or not you mailed the last life insurance premium.

So grab your pencil and paper, and let’s get started…

 

Step one: The People.

There are three groups of people you need to consider when drafting a Will;

  1. your dependents
  2. your beneficiaries
  3. your executors

 

Dependents.

These are the people who rely on you for some sort of care, support and/or protection. Traditionally, these were children still living at home, but modern families are often complicated with blended families, shared custody arrangements, adoptive children, elder relatives and even pets added to the mix. Thankfully, lawyers have seen it all before, and, even better if you have a family as nutty as mine, are sworn to secrecy…

Make of the list of those who you are responsible for, whether physically, socially, financially or legally, and the type of care you provide. Keep it simple – the rest can be figured out later – at this stage, your task is to create a comprehensive list.

Now list any special circumstances that will have to be addressed.  For many families, this may involve shared custody, child support or special needs but for expats there may also be issues of differing nationalities, citizenship and resident status that may have tax and legal implications.

For those of you with your own business, bear in mind that you may also have professional responsibility for continuity of care of clients – check your licensing organization or professional code of conduct if you are unsure.

 

Beneficiaries.

Your beneficiaries are the recipients of your estate – usually immediate descendants, siblings, friends and charities. Typically, assets are divided equally between your children, so if you want to use a different split, make this clear to your lawyer so that they can prevent your will being subject to legal contest. Note also that laws differ about division of assets when you die intestate – half siblings, step and adoptive children are often treated differently, and the portion of the estate automatically assigned to the spouse varies widely internationally.

If you have any other people or organizations who you want to leave money to, add them to your list now.

 

Executors, Financial Guardians and Legal Guardians.

It’s your group of guardian angels, so pick wisely. These are people who you trust to administer your estate and make sure your wishes are carried out, to care for your dependents and to manage the finances of the beneficiaries if they are unable to do so. The roles carry huge responsibility, so discuss whether or not your intended choices are both willing and able. They can be family members, friends or lawyers; typically, lawyers are paid (and aren’t given custody of the children…) whereas family and friends are less likely to be.

Note that guardianship differs from child custody: while custody refers to the physical care provided by a parent (who may have no legal powers), legal guardianship may involve physical and/or legal custody, and continues until the child reaches adulthood or the guardian’s death. By contrast, especially in the modern family, custody is far more flexible and changes according to the situations of the parents.

Here’s where expats need to be especially careful, because the local laws may be very different to those of your home nation and custody / guardianship arrangements and next of kin may not follow familiar rules. In the UAE, for instance, if no will is in place, Sharia law prevails, meaning that assets and custody of children potentially follow the male line – your husband / partner’s parents, brothers and sisters. How is your relationship with your mother-in-law, by the way?

 

Step Two: The Money

Your estate is the sum total of your assets, and while many of you will be rolling your eyes that I am pointing out the obvious, I can guarantee that there will be plenty of things that you will have forgotten. The temptation is to run to the filing cabinet / junk drawer and fish out the most recent bank statement, and start noting down numbers, but don’t. Your assets are constantly changing, so you only need to include categories – current and savings accounts, property, jewelry stocks, shares, businesses, investment accounts, life insurance, digital assets (websites, videos etc) – and where those assets are held. For a starter list, click here for pdf cheat sheet.

While you are making your list, make note of who your beneficiaries are, and how they are reported. Typically, life insurance goes to the spouse, but in a world where divorce rates run at about 45%, there are a huge number of exes who are still listed as primary beneficiary. Take note, and make any necessary changes…

 

Step Three: The Decisions

Now that you have the information, you can start making decisions about how to pass on your legacy, human or otherwise. Your key priorities are the welfare of your dependents, so start with those and work from there.

Guardianship of dependents.

Who do you want to care for your dependents if you are no longer around to do so? Depending on the complexity of your family and the types of dependents, there may be more than one answer to this question, so set it all out clearly, naming each dependent individually. Talk to all the parties concerned before you head to the lawyer’s office – you may be surprised to hear who your children would hate to live with, or which relative is intending to move to Outer Mongolia next month – to prevent return visits. Factors that may affect your decision are not just emotional – also consider location (how will your children feel about leaving the country, for instance), age and health of potential guardians, relationship with other friends and family, support network and financial ability to provide care.

Include financial provision for your dependents and decide who you want to manage your estate for them if they are still minors. In many cases, life insurance helps to cover the cost of raising children, but once you include the cost of college education it may not go as far as you think.

Financial, legal and professional dependent provision will require discussion with your lawyer and with those who you nominate to take over; the good news is that if planned in advance, the process is straightforward (and certainly infinitely preferable to leaving your legal advisor / executor to try to unravel the mess in your absence).

 

Step Four: The Division

This is the fun bit, providing you have money to leave. But before you start divvying up between your offspring and the local cat protection league, here are a few pointers:

  1. Remember that your debts and liabilities (taxes, funeral expenses, etc) will be deducted from your estate before the remainder is distributed. You can offset many of these by establishing a Trust, which will will talk about in the next chapter, but for the moment, just remember to include your loans, debts and other obligations when you are cataloging your estate.
  2. Ensure that you own your assets outright before you will them away. Anything jointly owned needs careful consideration to avoid passing on a headache rather than a well-intentioned gift. If you hadn’t already discussed future plans with the co-owner(s), now is the time to do so.
  3. Now is not the time to make a point. Sure, you may have favorites, but remember that in many cases you are not just leaving behind a bequest, but a lifetime of family discord and ill-feeling – not to mention legal challenges. It may seem a lovely idea to leave the bulk of your estate to your newest grandchild/ favorite nephew or next door neighbor, but the resulting fallout can often sour the best of intentions. The same rules apply for property – find out which mementos, furniture or jewelry are most loved by your friends and family, and divide accordingly, informing all of them who has been given what. That way, any discussions, disagreements or disappointments can be directed at you, rather than unwitting recipients.
  4. While we are on the subject of leaving objects to people, think carefully about whether they want them, and the responsibility you are handing over. It’s difficult to part with things, no matter how ugly, unwanted or expensive to maintain without feeling disloyal to the person who gifted it.

Now you have done the difficult bit, it’s time to put pen to paper and make a rough outline to take to the lawyer’s office. If you are an expat, you may be advised to get legal input from both your home and host nation perspective – while the laws of your home nation usually take precedence, extended residence overseas may change the rules, so be sure to explain the situation rather than making assumptions.

You need to include:

  • Your name, and identifying details (usually your address, but if you are an expat, you will need to clarify your domicile (primary place of residence) with an experienced lawyer – it has significant tax and legal implications.
  • Names of beneficiaries; the people and organizations you want to leave your assets (whether money, housing, land, stock options, digital assets etc ).
  • The name of your executor (the person responsible for making sure your wishes are met).
  • Guardians of your dependents – Legal and physical.
  • Who gets what.
  • Your legal advisor should also include a “residual clause” that states the recipient for any assets you forgot to mention, or have been accrued since you wrote your will. “I bequeath any residue to” should take care of it.
  • Signature and date, with initials and date on every page.

Congratulations if you made it to this point- you are well on your way. In the next post, we’ll be introducing the fun stuff.. Planning your funeral, Living Wills and frustrating the tax man.

Bet you can hardly wait.

 

Further Resources:

Nolo.com – Legal encylopedia – Wills

USA.gov – advice on writing both social media and regular wills.

UK Citizens Advice Bureau information on writing a will.

Australia. gov – Resources on wills and power of attorney

FIGT Conference March 22-23 2013

Why You (and every expat) Should Be Going to FIGT 2013

FIGT Conference March 22-23 2013It seems incredible that a year has passed since the last Families in Global Transition conference; forever infamous as the one where I had a complete (and very public ) online meltdown at the eminence and credentials of my fellow presenters, only to have my cover blown by one Judy Rickatson, (aka @wifeinasuitcase) who is the expat online version of Wikipedia. If it’s out there, she knows about it, Tweets, Likes and Pins about it, and, I strongly suspect, has superhuman powers. If she was in charge of the search for the Holy Grail, it would have been found years ago, and it has become my life’s work to try and find an expat blog that she hasn’t yet discovered. She is the Simon Cowell of the expat social media world, discovering talent from the four corners of the globe; only much, much nicer.

Hence my blubbering gaining the attention of various members and supporters of FIGT, who all headed across to the Defining Moves website to offer kind words, support and offers of hospitality. It was the single most generous spirited gesture, and it embodies all that is special about the FIGT organization. People with years of experience, a hugely diverse range of backgrounds and an incredible depth of knowledge, all passionate about making expat life better.

It’s why I can’t wait to go back this year, and why you should all be joining me too. It’s a two day whirlwind of people, presentations and discussions from every perspective; starting with a keynote presentation from the brilliant Pico Iyer. Whether you are an accompanying partner, a expat service provider or from corporate HR, you will leave with a wealth of information and a host of new friends and real, live expat human resources. The only dilemma is how to fit it all into two days.

As for me, I have very personal reasons to want to go there too. It will be the first time I will actually meet many online friends in person, both those who regularly pop up here in the comments sections, on the Facebook page and on my Twitter feed.

At the top of my list?

Judy, of course.

 

If you need more information about Families in Global Transition and the FIGT 2013 conference, here’s the link to their website, including information on registering, becoming a member (as well as all the other benefits, you qualify for a reduced registration fee), global affiliates, sponsorship,  the New Attendees information webinar and the New Attendees welcome evening. I hope to see you there!

8 Rules for creating an expat budget. Defining Moves - the art of successful relocation. Information, inspiration and resources for the global trailing spouse, accompanying partner, expat partner.

8 Money Rules for Creating Your Expat Budget

8 Rules for creating an expat budget. Defining Moves - the art of successful relocation. Information, inspiration and resources for the global trailing spouse, accompanying partner, expat partner.It’s Part 2 of the “8 Money Rules for Creating Your Expat Budget” post – if you missed the first part, you can read it here.

 

5. Protect Your Credit

So you think paying your bills on time is enough to get an excellent credit rating? Think again. Credit companies don’e release the formula that they use to compute your credit score, but it is a combination of length of credit history in the location (strike one- you’ve only just arrived), range and types of open credit (strike two, because you can’t get credit easily due to lack of credit history, documentation, etc etc.), ratio of credit balance to availability (strike three – any credit cards you do manage to open will have tiny limits – think $300).

The bad news is that your credit score is used for everything from renting a home to getting a cellphone contract to job applications, so you can’t avoid it. The good news is that account management has the greatest positive impact on your score after length of history and range of loans, so set up direct debit payments for at least the minimum payment for every card.

This doesn’t mean we are giving you permission to carry balances from month to month – what we are doing is protecting you against memory loss, jet lag, time zones, and general expat chaos – all things that make it very easy for due date to slip by unnoticed, until your credit score plummets like a lead balloon.

There’s a final warning, however; don’t neglect your credit back home. For large loans, many global banks will do an international credit check, which is great news unless you forgot to put your other payments on autopilot and the now overdue bills are lost somewhere between here and Outer Mongolia..

 

6. The Expat Emergency Fund

No matter how culturally aware, linguistically talented or globally experienced we might think we are, I have yet to meet an expat, HR manager or Global Mobility Specialist who can predict the future, despite what we would have you believe. Instead, we focus on the assignment, assume that everything will go perfectly and rely on finely honed problem solving skills to get us through. Predictably, it’s a monetary recipe for disaster, so you need include saving an emergency fund in your budget now.

The financial gurus will advise you to aim for and emergency fund equal to 6 months of living expenses, with an additional allowances for dependents or if you work in a highly specialized field.

For expats, what constitutes 6 months living expenses can vary greatly, and so we need to err on the side of caution. If an overseas assignment ends early, you have significant additional costs: the cost of repatriation, temporary accommodation, down payment on a home / rental deposit, household goods (especially electrical items), location appropriate clothing. Repatriates face not just the financial implications of finding a new role, but finding a new home and a new way of life.

As a guide on what your long term emergency fund should look like, use your country of citizenship as a guide – while you may be able to live more cheaply elsewhere, you are not guaranteed citizenship, especially without employment. Take into account the cost of living, but also include a figure for transportation of yourselves and your household goods and pets, housing deposits (if you don’t already own a house), temporary accommodation, health insurance (if your country doesn’t have a national health service) and interim job search costs.

The good news for those of you who don’t suffer redundancy, early termination of assignment or other loss of primary income is that you have an emergency fund that will see you through almost anything expat life throws at you. And if you think expat life is all warm milk and puppies, you might want to head over to the Expat Life and Laughter section for some timely reading..

 

7. Think Long Term

Bottom line – the average lifespan of the international assignment has us all focusing on the short term, but our nomadic lifestyles mean that we should be paying more attention to long term planning than our less transient friends. Why? Extended or repeated expatriation can mean losing eligibility for home nation benefits such as healthcare, resident school and college fees, and even (should there be any left by the time we retire) state pensions.

Expats should be putting at least 10% of their income into retirement savings; even more if you change jobs frequently, plan on retiring outside of your home nation or somewhere with a high cost of living. Younger expats also need to budget for college fees for children, especially if their career path takes them through the US.

The good news is that many expats are eligible for tax free savings and investments accounts if they reside outside their home location for a named period, however you will need to get advice from a reputable investment advisor who is familiar with both your long term lifestyle goals and the tax rules for your country of citizenship.

 

8. Insuring Against the Unknown.

Somehow, we always seem to come back to the tricky subject of what happens if the worst happens, but it’s one of the most important pieces of your expat financial plan.  Life insurance for both partners is vital – while often only one partner is a direct income earner, that ability to fulfill the demands of the role is facilitated by the supporting partner.

The fundamental questions to ask about life insurance include length, value and cost of the policy, how premiums / eligibility changes according to location, health and age of the policy holders, and in the case of company provided policies, what happens of you leave the company?

You may also want to consider long term care (LTC) and disability policies – while not often included in employment benefits, they are extremely important, especially in light of the rising cost of health care. They will need careful consideration – many policies will exclude specific locations, activities or have requirements for redemption, so make sure that any policy you take out accurately meets your needs. More expensive premiums are infinitely preferable to risking a denied claim.

 

If it all seems overwhelming, don’t panic. We’re not expecting you to get everything done today, or even this week or this month. The most important thing you can do is something; most of the items on the list take under an hour to get set up and get started, and once automated, can carry on building quietly in the background. As for the rest? It’s up to you..

 

Additional Resources

The Household CFO – A Financial Guide for Expat Spouses.  Excellent basic guide to expat finances, from highly respected financial advisors writing in a way the rest of us can understand. (Email address required)

Credit Karma. Free credit score access with no pull on your credit record. (Email signup required, but the emails are rare, and are a very helpful reminder to check your credit)

Five Free Financial Favorites. Previous post with links to some great resources (including Credit Karma)

Coping with expat homelessness - My Family in Global Transition. Defining Moves - the art of successful relocation. Information, inspiration and resources for the global expat trailing spouse / accompanying partner.

Coping with Expat Homelessness – My Family in Global Transition.

Coping with expat homelessness - My Family in Global Transition. Defining Moves - the art of successful relocation. Information, inspiration and resources for the global expat trailing spouse / accompanying partner.It’s the latest expat dilemma in the Defining Moves household, and in answer to our newly homeless state, I’m moving in with my sister. She may be currently unaware of her impending fate, but I’m guessing that she will be the recipient of quite a few panicked phone calls to inform her within minutes of this post being published.

It’s been a tricky few weeks in our family life; a combination of relief/grief that our home (albeit not one we have lived in for the last 7 years) has finally sold. It’s the first home that the OH and I bought together, the one we spent 8 years of blood, sweat and tears (and near financial ruin) renovating, and is the place where Feisty entered the world, prophetically at high speed and interrupting a particularly good Royal Variety Performance.

It’s hosted Millennium parties, expat students, copious numbers of chickens and too many renovation weekend projects to count. Friends and family have been coerced into everything from installing septic tanks, tiling bathrooms and ripping up floorboards, regardless of ability, stage of pregnancy or copious quantities of small children. Ask most of my Facebook friends for their memories of the house and they will cite brambles, dust, chaos, dodgy alcohol, and hopefully, laughter.  But for the last eight years, it’s been rented by a number of tenants ranging from the delightful to the dire, and is beginning to show the strain.

Throughout our expat travels, it’s what we have always called home, so ten days to pack up a household and fifteen years of memories, friendships and roots were all too short. We saw so many friends that we have missed, and missed seeing too many more. All the while, we worried that we would lose our roots, our stability, and our sense of home.

But a funny thing happened as we drove away, en route to my sister’s house. As the house disappeared from the rear view mirror, we didn’t feel sad anymore. We had had a brilliant ten days, surrounded by people who we only get to see every few years, and yet we picked up the threads as if it were only yesterday. We blended back into life without so much as a ripple, and when answering questions about when we would be returning, it was clear that not only would we be coming back, but that we knew how, when and what adventures we are going to have. This particular chapter may be over, but the story is far from finished.

I had imagined that the kids would be sad, saying goodbye to the only home that they had ever known, but I had missed the obvious point. It has not been their only home, and everywhere they have lived, they have been surrounded by people who care for them, whether blood relations or friends. The people at ‘home’ have taught them about friendship, strength of character and what is really important, and those values are what the rest of our gathered global family have in common.

We have gained so much more than we have lost, and it took selling the house to realize it. We were so focused on the safety net below, we had forgotten to look at the view. Somehow, having no house to call our own meant absolutely.. nothing. We still had the laughs, the stories, the catching up and the paintball bruises. We still have friends who find time to spend with us, who tolerate the months of silence followed by hours of chaos and who understand that if we didn’t catch them this time, we will definitely see them next visit. The memories of good times didn’t disappear once the pictures were packed, and we don’t need to be in the same room to share a common ground.

As the miles began to build up between ourselves and our former home, the Wiggy One made a observation, in rather less sombre tones than you might expect.

“Auntie Sarah’s is our home now”. He was smiling when he said it.

I had been thinking the same thing only that morning, when I woke up in her house, on a makeshift Ikea bed, amid the accumulated debris of my (temporarily displaced) nephew’s bedroom. In under two weeks, my physical residence in my home nation has gone from 6000 to 3 square feet. The only things I owned were in the suitcase on the floor and in a top drawer of the dresser – my drawer.

It represented permanence, the expectation that you are returning, and when you do, you will always have a place here. It’s all the things that we treasure about ‘home’, acceptance, love, laughter and a profound sense of stability. What we didn’t realize before was that it was held in bonds not bricks, hearts and not houses and people, rather than simply places.

It’s funny what having your own drawer can do. And a wonderful, kind and incredibly generous global family, who welcome us home; wherever, whenever.

 

 

Relocating? 9 Essential questions every expat should ask. (Part 2)

It’s the second part of our guide to avoiding relocation disaster – and the same rules apply for domestic moves, diplomatic postings and international assignments. So before you sign on the dotted line, here’s numbers 4 and 5 of the essential questions that every relocating expat should ask.. If you missed the first part, you can catch it here.

4. What support is available? If you answered the first three questions, you already have an idea of what support you’ll need – so here’s where you have a clear conversation with HR about what support services are in place to meet those needs. Many packages seem lavish to the casual observer, but when you scratch the surface, the services included are not always right for your family needs.

Schools, for instance. While the local schools may be excellent, if you are on a 2-3 year contract with a high school age child. you need a curriculum that accepted by their target college rather than a host location one. If the relocation package doesn’t include funding for private schooling, your salary has effectively been reduced by anything up to $30,000 per child, per year.

Increasing numbers of assignments are to developing markets – India, China and Africa – all of which need considerable amounts of cultural orientation and language training. Does the package include enough for you to be able to function effectively and meet your personal goals outside the home or workplace? Shopping, medical visits, dealing with bureaucracy – all are a very real part of the transition, and all involve interpersonal communication.

These examples are gleaned from experience, and the best way to understand what support is needed is to see it firsthand. Hence number 5.

5. Do we get a family pre-visit? In my mind, the pre-visit is vital to a successful relocation – there is no substitute for seeing firsthand the challenges that you all will be facing. Throughout the assignment process, your life transition is facilitated by people whom you have never met, and who are deciding your needs for you. The pre-visit is your chance to see what they got right, and what they have wrong.

The biggest mistake people make is to use the pre-visit purely to find housing. This is wrong for two reasons:

  1. it means you agreed to the assignment based on a very small amount of information and
  2. the time is better spent identifying the challenges you face, not choosing floor plans.

So what should you be doing? Sadly, not staying in the hotel enjoying room service, or visiting the local tourist sights. Your goal is to recreate daily life, in all it’s glory, using the information that you put together in the previous steps. Look at neighborhoods, visit schools, experience traffic and commute times, do some grocery shopping, and most of all, talk to other expat residents.

Listen carefully to what they are telling you about the good, the bad and the plain ugly of your new home. Not all  of their concerns will be problems for you, but you can count complaints about the weather, issues with utilities, security, traffic and schools being pretty universal.

Once everyone has given you the low down and dirty, listen carefully to the concerns of your own family. The work environment will be more familiar and (usually) more supportive, whereas everyone outside of work is flying solo, and your package needs to acknowledge and make allowances for that. With “62% of all refusals to accept an international posting .. family related” and “34% of expatriates return from assignment prematurely because of family concerns”, this pre-visit is a time for the whole family to identify the potential pitfalls and possible ‘deal breakers’ while you still have time and negotiation on your side.

References:

Tales of woe from the roaming professionals

Brookfield Global Relocation Trends Survey

 

Camel train circa 1900's

Relocating? 9 Essential questions every expat should ask. (Part 1)

Camel Train circa 1900

 

When we think of living abroad, we instantly conjure up images of white sandy beaches, turquoise seas, friendly locals and a leisurely quality of life. That is, until we’re two days into our first relocation, surrounded by boxes, with no power, not internet, and no help in sight. By day four, the bloom has gone off this particular rose, and by day seven, we realize that we were possibly just a little naive in thinking that four bedrooms, a balcony and guaranteed sunshine were really all we needed to find our bliss. So for the anyone considering relocating, here’s part one of the ‘9 Essential Questions Every Potential Expat Should Ask’ series. And yes, the same rules apply for domestic relocations too..

1. Where am I going?

The standard ways of finding out destination information – travel guides, websites and maps – tell you very little of what you need to know when relocating. Visiting a country for a short period is very, very different to living and working  there, and it’s the challenge of day-today living that causes many assignments to end early.

To understand whether your new location is a good fit for you and your family, you need to do two things. Firstly, assess how your time is spent currently, including work, school, commuting travel, after school activities, sports, socializing etc. Using resources specific to long term living rather than short term visits, assess how much change you would experience, what benefits and disadvantages your new location has, and decide whether or not this is really the move for you.

This might be anything from a lack of sunshine /open space/daylight hours/ professional theatre to different education systems, religious practice or high crime rates. There is a whole world out there, and it’s better to keep your options open for a more appropriate assignment than be forced to terminate one early.

Ask your HR department about global information that the company purchases –  resources like Living Abroad, Expat Arrivals, the Not for Tourists guides and the Lonely Planet guides will give you much of the information you need, and online blog registries and expatriate forums have the real life experience. Consider joining a network like Internations to meet locals and expats from your potential host location.

2. How long will I be going for?

Notice that didn’t I ask how long was your contract was for?  Ten years and 5 relocations ago, we were offered a 1 year temporary assignment to Kenya. I have yet to return home, and all of our wedding photographs, birth certificates, photographs of our children as babies and furniture are still in a house in Wales. Contracts get extended, new transfers are offered, and if you are taking short term assignments, often all your belongings are not included in the relocation policy.

More importantly, you need to have a clear understanding of how long all members of the family are willing and able to participate a globally mobile life.

The long term issues surrounding schooling mean that your children may not have the required qualifications to attend the school of their choice (although colleges and universities are becoming much more flexible in terms of acceptable international admission criteria) or they may now be liable for higher ‘international’ tuition fees as you have lived outside your home country for too long to qualify for local fees.

The accompanying partner may have negotiated a year’s leave of absence, or may be required to maintain professional registration status, both of which become vulnerable if an assignment is extended.

3. What does the package include?

There are various types of relocation policies, including local, local plus and international, all of which give different levels of pay and benefits dependent on location. And while some will seem very generous in terms of base salary and hardship allowances, once on assignment you can quickly discover that the money is eaten up in unexpected ways.

If you have the information from the previous questions, you will have a better idea of what your new lifestyle will cost, and whether or not components that you consider essential are reflected in the assignment offer.

Key areas to look for are not just base salary, but frequently reviewed goods and services supplements (useful in less stable countries where the price of goods and exchange rates can fluctuate wildly) , health insurance coverage, childcare and school funding, whether you will be paid in your home or host currency, travel allowances, emergency evacuation policies, and repatriation assistance.

Talking to other expats will give you the best understanding of the real cost of living, which brings us neatly to the first question in Part 2 – “Do I get a preview visit?”

The expatriate accompanying partner, non-working by choice or circumstance?

This is a guest post by Louise Wiles, herself an accompanying spouse and founder of  SuccessAbroadCoaching.com. Louise together with her colleague Evelyn is currently running a survey Career Choices and the Accompanying Partner which you can access by clicking here. Read the article to discover more:

 When organisations assign employees to overseas postings they often also assign an accompanying partner and family. The experience is usually sold and described by the assigning organisation as a wonderful learning experience for all, and of course for many it is. However what is often overlooked is that relocation abroad can also be a stressful and emotionally charged event for all.

This new school year was our second at the international school that my children attend. I watched as the new parents looked anxiously on during those first few days and weeks. Their greatest concern; will the children fit in, make friends and be happy? There were teething problems for some, but for most the initial tricky period of adjustment was soon over and new routines were established and friendships made.

And so now, children settled, the working partner picks up their new roles, business trips and long working days commence and the accompanying partner begins to mould their new lives. Some join the local international/expatriate clubs, others take up sport, local charity work and some start to scour the local job vacancy listings. Many talk of past careers often in professional and corporate positions with skills, qualifications and experience that currently seem somewhat redundant.

Some partners welcome the career break, the chance to focus for a time simply on their family. But, according to research conducted by the Permits Foundation in 2008, it would seem that not all partners are happy to embrace a non-working lifestyle abroad.

The research found that whilst 90% of partners were working prior to relocating. Post move only 35% stated that they were working in the host location. Of those who were not working 75% stated that they wished to do so.

Of those who were working, two thirds stated that they were either satisfied or very satisfied with their current employment opportunity, with 61% working at a level that was either equivalent or higher than the level of their employment before relocating abroad.

So if those who are working are satisfied to very satisfied with their current roles and employment opportunities abroad, why do the majority of accompanying partners not find employment even though they state that they would like to do so?

These are questions that I, Louise Wiles (Success Abroad Coaching) and my colleague, Evelyn Simpson (The Smart Expat) are keen to answer. We have designed a survey which aims to investigate the partner’s perspective on career choice and employment opportunities whilst abroad.

The Permit Foundation Report found that although 85% of partners would welcome organisational support in respect of career and employment abroad only 18% actually received it.

We hope that by better understanding the views, experiences, hopes and needs of accompanying partners we can then help to promote their needs more effectively with employers.

Families who adjust well and are happy abroad have a positive impact on the expatriate employee. This has important follow on benefits in terms of ability to focus effectively on work issues, preparedness of the family to stay the full contract term, willingness to extend the contract and willingness to accept future assignments.

If you are a working or non-working accompanying partner currently living abroad then we would greatly appreciate your help in completing the survey.

You can access it by going to this link. It is anonymous and takes only 15 minutes to complete. We will happily send the results of the survey to you. All you need to do is click done on the last page of the survey and leave your name and email address. As a sign of our appreciation we will enter your details into a free prize draw with some great coaching packages and books as prizes.

If you are able to forward this article and link on to other accompanying partners we would be very grateful. The greater the number of participants the more reliable, representative and therefore useful the results will be.

Thank you, your help is much appreciated.

If you would like to contact either Louise or Evelyn, they can be reached by email:

Louise@SuccessAbroadCoaching.com

thesmartexpat@me.com