The Expat Option: Why America’s Ultrawealthy Are Diversifying Abroad

The quiet exodus of America’s wealthiest families from the United States is no longer a whispered rumor. Citi’s senior wealth executive, Darlene Patterson, has spoken candidly about the unprecedented surge in demand for foreign assets among her clients. This trend isn’t just about tax havens or citizenship-by-investment programs; it’s a fundamental shift in how these high-net-worth individuals view their financial future.

Patterson’s remarks are informed by her own cross-border experience, having lived and worked in Hong Kong and the United States. Her unique perspective highlights why this movement feels so novel: for the first time in her career, she’s witnessing U.S. clients actively seeking to book assets outside of the country. This isn’t about abandoning America entirely; rather, it’s a pursuit of “optionality,” as Patterson puts it – a desire for more lifestyle flexibility and protection against policy risks.

Patterson notes that this trend is driven by three key factors: enhancing family lifestyle, pursuing business and portfolio growth, and increasing wealth resilience against policy or sovereign risk. The numbers are staggering: Citi Wealth’s recent report expects a cumulative $3 trillion to shift into five leading financial hubs between 2025 and 2029.

Asia will be the primary beneficiary of these flows, with Hong Kong and Singapore alone capturing over half of this capital. One key concern driving this trend is the perceived instability of the U.S. political environment. Wealthy Americans are hedging their bets by securing additional residencies or golden visas in countries like Italy, Portugal, Jersey in the Channel Islands, Australia, and New Zealand.

Historically, the ultrawealthy have been synonymous with the United States. However, this shift reflects a broader global trend: as economic power centers continue to evolve, high-net-worth individuals are adapting their strategies to stay ahead of the curve. Patterson’s comments echo those of Nuri Katz, an immigration consultant who has spent decades relocating the world’s ultra-rich.

A recent UBS survey found 60% of family offices planned to make strategic changes to their asset allocation over the next year, with many trimming U.S. dollar exposure amid fears of economic policy volatility. This de-dollarization trade has significant implications for the country’s financial landscape. As the ultrawealthy diversify abroad, they’re sending a subtle but powerful message: even in the world’s most stable economies, there’s always a risk of unexpected events.

The question now is whether this trend will accelerate or plateau. Will America’s wealthiest families continue to hedge their bets, or will they find solace in the stability of their home country? One thing is clear: the era of optionality has arrived for America’s ultrawealthy. As they navigate this new landscape, one thing becomes apparent – their confidence in the United States’ economic future is waning.