Tag Archives: Family

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

Gender, Communication and the Adolescent Male. A Recipe for Disaster.

The years of intercultural miscommunication are finally paying off. Having created chaos and given offense across three continents, I am now the acknowledged expert in the art of the apology, and thanks to Wiggy One, yesterday I got to practice them, Yet again.

For those of you with teenage sons, I know you feel my pain. For those of you who have yet to experience the joy that can only be found in trying to raise an adolescent male, you might want to file this letter away for future reference, because you are going to need it.

Dear Ms X,

I was somewhat alarmed at The Wiggy One’s current English grade, and on close questioning he confessed that after completing what he felt was an inspired essay on the themes contained within The Scarlet Letter, he followed it up with the classic line ” And I didn’t even read the book”. I was unsurprised to see your “Let’s talk” response, and can only congratulate you on your restraint.

I can vouch for the fact that he has in fact read the book in its entirety, mainly because he generously shares his discontent with the writing of Nathaniel Hawthorne on a nightly basis at the dinner table, and has stolen all of my Post It notes. I can only hope that War and Peace is not on the curriculum this year, or I may have to abandon home cooked meals in favor of TV dinners and a locked stationary cabinet.

I have yet to comprehend the inner workings of the teenage male mind, and consider my day a success if no-one died and nobody got pregnant. Low standards, I know, but it’s either that or risk developing an unhealthy relationship with alcohol. What I am looking forward to is that pivotal moment in college when he realizes that all the interest, time and effort that others have invested in him over the years has been because we are all kind, good and caring people, and not because he is the Uncrowned King of the Universe or the Second Coming, both of which seem to be common delusions in adolescent males.

We have had a sustained discussion on the value of knowing the line between off the cuff humour and being a disrespectful arse, and how he has crossed it. I have also pointed out that if he fails to rescue the situation, his dreams of college may be rather closer to home (i.e the local Community College) than he anticipated. You will be delighted to know that not only did you succeed in fostering his understanding of classic literature, but also of the consequences of ill-thought out comments and a newfound respect for the role (and power) of educators in shaping one’s future.

At this point, I should probably be pleading with you to grade him on his written efforts rather than his verbal idiocy. Truthfully, I would rather not have to deal with the repercussions of a 0 grade for the next 18 months, nor his potential extended residence at home, so I do appreciate any clemency that you might offer. However, I must also thank you for teaching him a very valuable lesson about words, actions, consequences and adolescent insanity. I have a feeling that this will be one of his defining High School moments.

Yours sincerely,

Me.

 

(Photo courtesy of The State Library of New South Wales)

Today We Celebrate! The Trailing Spouse Keeping the Family Together

Today we celebrate! All of us trailing spouse moms and dads, who have chosen to follow their spouse’s/partner’s careers over their own, who have sacrificed to keep their family living at one place.

Today is not about what we’ve missed out on but what we have tried to create. A home, a family, a sense of security for the ones we love and a sense of knowing that we will always be there for one another.

We don’t know what direction our families’ lives will take in the future but we all try to do our best to shape our tomorrows. We may or may not succeed but we have to give it the best we’ve got. We all make our choices and some of us choose to put family first because we believe that is the best thing for us. That it’s better for our kids if our family stays together, providing more time to spend together.

Thanks to the visitors from Freedom from Chemical Dependency (FCD) and, later, reiterated by the Director of our school, I now know that research has shown that one of the strongest factors “in protecting young people from getting into trouble with alcohol or other drugs are positive relationships with parents.” Again, according to research, if parents are uninvolved in their child’s life, it increases the likelihood of children becoming problem drinkers (http://www.fcd.org/content/resources/newsletters.asp).

There are varied norms in different countries and many different types of families all around the world. By and large, they are all very happy and successful. I am simply stating that involvement with kids is paramount to any society where people organize themselves in families, whatever the shape, size and nature of family it may be! Yes, parenting can be accomplished from a distance but many of us trailing spouses have chosen to keep our families close.

So when you are asked for the umpteenth time as to where do you work, what do you do all day, give a broad smile and answer “I work very hard at home!”

FCD Educational Services is a nonprofit substance abuse prevention organization http://www.fcd.org/content/index.asp

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.

 

 

Expat or not, this is important.. The Relocating Expat Information Checklist. Defining Moves - The Art of Successful Relocation

Expat or not, this is important.. The Relocating Expat Information Service. You.

Expat or not, this is important.. The Relocating Expat Information Checklist. Defining Moves - The Art of Successful RelocationI have two distinct groups of readers; those who enjoy watching and hearing about my expat disasters from a safe distance, and those who are listening carefully, trying to avoid making the same ones themselves. Some are happy to stay exactly where they are and enjoy the fun, and some of you have a thirst, a career or a spouse leading you to life as a global nomad.

You all fall into one of two categories: those who hold the information, and those who desperately need it. I mentally think of you as The Knowers, and the Growers.

The Knowers (aka Locals & Expert Expats) are those of you who have lived in a place for long enough that you know where everything lives, know how to get the information and help you need, and understand the unspoken rules that make every community unique. You know which teachers inspire children, how much to spend on birthday gifts and which children have nut allergies. You know where to go to get your legs waxed, where to get your car serviced, and where to get the best deals on everything from food to children’s shoes to carpets.

And then there are the Growers (aka The Recently Relocated, the Inexperienced, Inept or Just Plain Overwhelmed).We can be easily spotted by our bewildered expression, the vast number of forms were are incessantly clutching, and by the GPS unit permanently fixed to the dashboard of our hire car. We arrive either half an hour early or ten minutes late, depending on how many times we had to stop to check your address. Our children are always under or overdressed and have Tshirts with unfamiliar writing and logos. If you happen to stop for a chat, we will either be lost for words, a little misty-eyed at your kindness or will talk your ears off for the next 45 minutes. And if you happen to suggest meeting up for coffee, our faces will light up with joy as we shout “Yes Please – Now??!!”

I spent most of my life as a Knower, rooted in the same community for the first 30 years, leaving only for college and returning faithfully each holiday. Living in the town was as easy as breathing – I knew where everything important could be found, and when a gap in my knowledge appeared, family and lifelong friends quickly filled the breach. It was a fabulous upbringing – secure, stable and even now, very little changes. It had roots.

At 30, it all changed, and I became a Grower. I had to nurture a new life, a new network and a new identity. I lost my career, my sense of self and my instruction book, and I made many expensive and painful mistakes. So many, in fact, that I have filled a website full of them. It was only thanks to the intervention of some very kind Knowers that I didn’t run screaming back home.

Which is why, following on from the last post, I’m putting together the Defining Moves version of two tins cans and a piece of string, to connect you all in the most basic of ways. No-one should have to make this many mistakes, or hit the low points that so many do, and we can at least try to do something about it. S, linked at the bottom of the page are two lists of all the questions we desperately want to ask those of you in the know, but are too shy / afraid / overwhelmed to ask.

Whether you are a Knower, a Grower or anything in between,  download it, print it, add to it and share it with schools, friends and newcomers alike. Comment if you think I have forgotten something, but whatever you do, please fill in whatever you can. It doesn’t have to be complete – one simple recommendation is enough to tell us that you have noticed us, and you do care. We need you.

We who are about to arrive, salute you.

Stuff We Really Need to Know: The Newcomer’s Checklist

What Every Parent Needs to Know

Photo courtesy of the US National Archives.

This is how a heart breaks. Expat parenting

Expat parenting - this is how a heart breaks. Defining Moves - the art of successful relocation

You think when you have left school, taken exams, graduated from college and reached adulthood that the slings and arrows of the school playground can never hurt you again.

And then you have children of your own, and you realize that you were wrong. Only this time, it is magnified through the lens of their pain, your sense of powerlessness and the weight of parental expectations. I sometimes think that I should just have ‘Bad Mother’ tattooed on my forehead and be done with the pretense. It’s one of the harder realities of parenting.

A wonderful, heartbreaking post by Anne Egros at Zest and Zen International reminded me of the pain of middle school all over again – not my own (the UK doesn’t have a ‘middle school’, just primary and secondary) but instead the joy of experiencing it in all it’s misery; the challenge of expat parenting.

Middle school is widely acknowledged in the US as the tricky one. It serves the 11-14 year olds; that explosive mix of puberty, hormones and identity crises. It’s when the differences between girls and boys are no longer about sports and hobbies, and all about body shapes, gender expectations and the excruciating embarrassment of sex education.

Ironically, my son nearly made it through unscathed. He had a solid group of friends who played football in the park, consumed junk food in gigantic quantities and who had a healthy respect for parental sanctions. We heard of bullying, shoplifting and alcohol consumption, but they seemed either too lazy, too disinterested or too involved in the destruction of opposing medieval forces to be affected by it. His grades were decent, his self esteem was intact and when graduation came around, it should have been a very happy event.

It was awful.

In Britain, the only place you graduate from is college. Everywhere else, you just leave, mostly with only a modest school dance to mark the occasion. And although I knew the parents of my son’s school friends by sight, they didn’t know me well enough to know how uninformed I was. So when we turned up to the Middle School graduation ceremony, I expected a general gathering with a bit of applause, the acknowledgement of the star pupils and very little else.

The first clue I had of impending parental humiliation was the distant sea of undulating teal. It was the massed forces of the graduating 8th grade, all wearing robes. Despite many opportunities over the course of my former life to wear a cap and gown, I had managed to repeatedly avoid it, and yet here all 300 were, at the grand old age of 14, already donning the robes of academic advancement.

It got worse. They were also all in formal wear; shirts and ties, prom dresses and heels. Unlike my son who had dressed himself – in his own personal uniform of shorts and a t shirt. Yet again we had got it wrong, but never so publicly. We were all completely unprepared, and at that moment, I truly hated the fact that I was an expat.

We have faced floods, earthquakes, angry mobs, police questioning and personal injury, but there have been very few moments in my expat life that have brought me to tears. And yet, sitting in that auditorium, surrounded by parents I didn’t know all whispering about the ‘parents who had let their son come so inappropriately dressed’ was by far my lowest moment. It was humiliating, frustrating and unfair, and there was absolutely nothing that I could do about it.

Which is why, when Anne wrote her article yesterday, I was reminded just how important an expat support network is, no matter how many global transitions you have been through. You get better, smarter and more practiced at the art of relocation, but there is always something waiting in the wings to trip you when you least expect it.

The good news? We’ve all been there too, and if we can’t warn you about every challenge you will face, we will at least hold your hand while you pick yourself up.

Welcome to our world.

 

Expat Adventures - Supermom. Defining Moves - the Art of Successful Relocation. Information, inspiration and resources for the global expat trailing spouse / accompanying partner

Expat Family Adventures. Just call me Supermum. Or better yet, don’t.

Expat Adventures - Supermom. Defining Moves - the Art of Successful Relocation. Information, inspiration and resources for the global expat trailing spouse / accompanying partnerMy children seem to think I have superpowers. On the surface, this seems flattering – all shiny lycra, comic-book stories and a movie where my character is played by Angelina Jolie.

The practice is somewhat different. It involves the assumption that any challenge can be presented at the very last minute, and a solution can magically be presented from the kitchen, the filing cabinet or presumably, a body orifice.

It’s my own fault. During their formative years, I took to carrying one of those enormous mail-sack versions of a handbag that every mother seems to get stuck with. (How men manage to ‘do’ childcare with just two pockets is a long conversation for another day.) No matter what the challenge, I had the emergency response kit tucked in the bottom somewhere. Hungry? Have a packet of (slightly furry) raisins. Thirsty? Sippy cup. Bored? Book, toy cars, Polly Pockets. Bacteria for science project? Remains of a mouldy sandwich wedged in the mobile phone pocket. Frankly, that bag had everything but a silky cape, and I have the spinal issues to prove it.

Time and location have not altered the reality. I have ranted at length about the challenges that expat life adds to the table – creating a family tree (with copious photographs) on a timescale that even DHL’s international service and a second mortgage can’t fix. Failure was not an option, so with some cavalier use of Google images, my children now both have illustrated family timelines with a little creative license. If using extras to fill the places of the stars when they are indisposed is good enough for the Oscar ceremony, it’s good enough for me.

2012 has seen the blossoming of the Wiggy One, with a sudden interest in socializing, traveling the world and even going to college conferences (gasp). For many of you, this may seem like a normal stage of teenage growth and not cause for disturbance, but as Wiggy’s time-honored strategy for adapting to a new environment involves adamantly refusing to speak to people for the first three months, it is quite the sea change. Predictably, as with anything new, he fails to understand the timescales necessary for certain tasks to be completed, and relies on the superpowers yet again.

This time, it was bureaucracy. So startled were we in his interest in going to Turkey and Greece with his history group that we failed to realize that his passport and visa were tied up in the Green Card application process. Not only were we not in actual possession of his passport (with accompanying visa), but the aforementioned passport was only valid for another 4 months. Entry into Turkey required 6 months validity. Re-entry into the US would the require a new visa. We had 8 weeks to achieve all of the above, 4000 miles away from the nearest passport office.

Thus ensued a frenzy of activity; tracking down non US passport photos (Costco, for those of you in a similar predicament, are helpful, quick and cheap. And are really happy to do retakes..), filling in forms, finding UK citizens to countersign  (no easy task when they are required to have known you for two years, and we move every three..) and spending days at in line at the Post Office spending a fortune on tracked, insured, countersigned, personally delivered, gold-plated, fingerprints and inside leg measurements required for delivery type postage.

We managed it, with a mere two weeks to spare, thanks to the efficiency of the US Immigration Service and the British Embassy in Washington DC, and the Wiggy One trooped off to pastures new with a newly minted Green card and passport and instructions to never, ever let them out of contact with his skin. I would have staple-gunned them to his torso if I could.

I must give credit where it is due. He had a very jolly time experiencing rather more of what Greece and Turkey had to offer than was advertised on the tour brochure (how does one inadvertently manage to book a 15 year old on a wine tasting tour??), and arrived back tanned, relaxed and carefree. Oh, and luggage free too.

Expat Adventures - Supermom. Defining Moves - the Art of Successful Relocation. Information, inspiration and resources for the global expat trailing spouse / accompanying partnerI should probably pay British Airways for the lesson to teenage global nomads. If it’s not in your hand, don’t count on it being there when you get to the other end of the journey, no matter what the airline might tell you. Sure enough, he arrived back on US soil, safe and sound, still clutching his wallet, passport, Green card and a book. And absolutely nothing else.

British Airways should have listened to mother..