Discussion:Estate tax for resident alien
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| Revision as of 17:38, 17 May 2007 Susieq58 (Talk | contribs) (Is there a limit) ← Previous diff |
Revision as of 21:13, 17 May 2007 IntlTax (Talk | contribs) (As far as I know) Next diff → |
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| {{ForumReplyPost|UserID=Susieq58|Date=17 May 2007|Text=Is there a limitation on the amount a resident alien can inherit from a US citizen, either in personal or real property?}} | {{ForumReplyPost|UserID=Susieq58|Date=17 May 2007|Text=Is there a limitation on the amount a resident alien can inherit from a US citizen, either in personal or real property?}} | ||
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| + | {{ForumReplyPost|UserID=IntlTax|Date=17 May 2007|Text=As far as I know, there is no limit on the amount that anyone can inherit. The limitation is on the marital deduction. If the resident alien is the spouse of the U.S. citizen, then no marital deduction is generally allowed. [[Sec. 2056]](d) There is, however, an exception for qualified domestic trusts (QDOTs). [[Sec. 2056]](d)(2).}} | ||
Revision as of 21:13, 17 May 2007
Discussion Forum Index --> Tax Questions --> Estate tax for resident alien
| 19 September 2006 | |
| I'm a bit confused if we will owe federal estate taxes when either my wife or I pass away. We both have green cards and our combined estate is under the current 2,000,000 but over the 1,000,000 exclusion if the law doesn't change by 2011(?). If I am under the 2mil cap when I die, will there be any estate taxes owed? What if my wife dies first? I think I understand the fact that I can't use the unlimited marital deduction, but if my estate is under the exclusion amount, does not having the marital deduction really matter? (assuming my wife gets it all anyway)The way I understand it, my estate wouldn't owe any fed estate taxes. Also, if my wife is second to die, and her total estate is under whatever the exclusion is at the time, would she owe any federal estate tax? Finally, we live in Pennsylvania. Does being a resident alien affect anything regarding state inheritence tax or can everything pass to the surviving spouse inheritence tax free? | |
| 19 September 2006 | |
| Transfers to non-citizen spouse are limited. Special treatment and planning is required. Seek professional help. | |
| 27 September 2006 | |
| Okay....
Include a QDOT clause in your will to be executed at the discretion of the executors. You will need a lawyer to write your will who handles Greencard clients, not a cheap off-the-block lawyer. Then, no matter what happens, whoever survives gets 100% of the sack of gold, at least during their lifetime. Depending on what country you have your citizenship in, you may also be subject to inheritance tax there. Get a good attorney from your home country to provide you with advice as to how to permanently break your domicile in your country of origin. You can always apply for US citizenship! Even then, you need the QDOT clause just in case; but at least you will probably break domicile with your home country. --liz www.BritishAmericanTax.com | |
| 27 September 2006 | |
| What about if one of the spouse is an american citizen and the other is a green card Resident Alien?
Same situation as NDTony mentioned above. | |
| 27 September 2006 | |
| No restrictions on transfers from resident alien spouse to citizen spouse, however the reverse gets sticky. The basic purpose of the QDOT is to ensure that the assets get taxed in the US. Sec. 2056A Sec. 2523(i) Note annual exclusion mentioned was raised last year to $120,000 (I think). This is old, but decent basic overview. QDOT | |
Omegapoint (talk|edits) said: | 27 March 2007 |
| what about green card spouses whose estate is under the one million exclusion? Do they even have to file? What about gifting? | |
| 17 May 2007 | |
| Is there a limitation on the amount a resident alien can inherit from a US citizen, either in personal or real property? | |
| 17 May 2007 | |
| As far as I know, there is no limit on the amount that anyone can inherit. The limitation is on the marital deduction. If the resident alien is the spouse of the U.S. citizen, then no marital deduction is generally allowed. Sec. 2056(d) There is, however, an exception for qualified domestic trusts (QDOTs). Sec. 2056(d)(2). | |
