Tuesday, June 10, 2014
Estate planning advice is usually given with a U.S. citizen audience in mind. However, additional considerations apply for estate planning in the U.S. for noncitizens. The first thing to know is that the U.S. resident will still have to pay federal taxes on their assets. The U.S. resident can still take advantage of annual exclusions for gift and estate tax exclusions, but the rules change and get tricky when it comes to the marital deduction. Generally, the marital deduction does not apply to a spouse that is not a citizen, but there are other options available to give a tax-free gift to a non-citizen spouse.
See E. Hans Lundsten et al., International Estate Planning 101, JD Supra, June 4, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.