My wife is a dual citizen (Thailand and the US), so she will pay US income tax on the proceeds of the trust.  The Vanguard fee is just the cost of doing business.  Other ways to do this (i.e. life insurance) have hidden fees, and I trust Vanguard much more than life insurance companies.

If you're going to have any money in the U.S. that is intended for the benefit of a Thai person, i.e. they will claim it after your death, do them a big favor and help them to apply for an ITIN (individual taxpayer identification number) now, while you're still around to help them.
 
They will have to file with Uncle Sam to get the money out of the U.S. and the ITIN is the 9-digit number that people who aren't eligible for a Social Security number use in place of one for the IRS.  Investment firms and banks won't release funds until someone produces either a SSN or ITIN.
 
How to get an ITIN?  Dr. Google is your friend. 

Set up a portfolio bond that is "capital redemption" and not "life assured". Then have it structured as a beneficiary trust. Have that pay out in the manner you wish and have it all placed in your final will and testament by a lawyer.
Im actually writing an article on exactly this. Ive already written this one if it's of interest.

https://www.comparereturn.com/publications/are-you-prepared-to-die-in-thailand


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All of my assets are in the US, with Vanguard.  It simplifies things a lot, and the older we get, simple is better.  A trust will be set up for my wife when I die.  I did this with a US based attorney.  The trust (which is in the US) will make monthly payments to her, and the payments will be sent to Thailand, or wherever she is at the time.  Vanguard will be the trustee for only 0.55% of the assets in the trust, which is less than most banks, etc, will charge.  I need to use Vanguard's funds though for the trust, which I do anyway.  Thailand does not recognize trusts, and besides, I do not want to have my assets in Thailand.  My wife will be able to do what she wants with the monthly payments, but in your case, it could be controlled even more if you wish.

42 minutes ago, LosLobo said:

Understanding deeming is the crux of determining one's pension entitlement, the addition of this subject including deeming rates would make your article more complete.

 

However, I may just go back and make a quick revision mate. I appreciate your input! 

Thanks LosLobo, 
I deliberately steered away from Asset calculations and deeming and put the phone number for DHS in there as that's where I feel if you are close to the edge then you should really pay someone who is a Dip FA to give you some advice or contact Centrelink directly. 

As for using the ASX as a market entry point for the foundation of retirement portfolio at the tail end of a 7-8 year bull market?... That's also something I would advise caution in regards. 
I've met clients who have 7 figure stock portfolio's who still don't have stop loses set on their positions... Absolute lunacy in my mind. 

Even if you take stable high div/low vol favorites like the "big 4" the NAV dipping and then a potential chip into the principle has a compounding negative effect on your policy... 

Then again, I am an overly cautious investor/advisor. I suggest 5 buckets (Cash/Bonds-Gold/Fixed Income/Blue Chip/Growth) and ensure you have 2 years of expendible income as cash at all times (for the next market cycle downturn). 

Unless of course your policy has become insolvent or frozen. In that case you can't access the funds anyway so that's actually in a worse position. 
 

1 hour ago, LosLobo said:

Your super drawn down does not get used for calculating your income …..the total balance of your super is used and then that amount is deemed.

"

What the income test is

We assess your income from all sources. This includes financial assets such as superannuation. To work out how much your financial assets are worth as income, we use deeming.

Maybe I was wrong in the article, however the above is directly from the DHS website? 

https://www.humanservices.gov.au/individuals/services/centrelink/age-pension/eligibility-payment-rates/income-test-pensions

Hey crew, 
I wrote the article above. It's a long one... haha. 

Age Pension: The ultimate article for Australian Expats.

https://www.linkedin.com/pulse/age-pension-ultimate-article-australian-expats-ryan-cullinan-acsi/

Every year more Australians are looking overseas to start their retirement in paradise. Whether it be for a lower cost of living, warmer climate or because they enjoy more exotic surroundings. As a financial planner one of the most common topics I get asked about is "am I eligible for the age pension?" and this article should set out to answer all of the important questions.

There will be a few surprising facts and figures in this article, such as the '35 year rule' trumping the '2 year rule' and how your income vs. assets may affect what you're entitled to.

*WARNING* this is a long article, and for a good reason; there are many factors in play here, if you find yourself getting half way through this article and it's not answering the specific question you are looking for, please send me an e-mail directly to [email protected] or simply message me your question to my linkedin profile: https://www.linkedin.com/in/ryancullinan/

Before we get started it's important to note that everyone is different and the laws surrounding your eligibility and potential entitlement are unique and do change. This article was originally written in July 2018. If you have concerns about your pension you can contact the Department of Human Services (Centrelink) HERE.

Contact the Department of Human Services. 132 300 within Australia or the international number: +61 3 6222 3455