Estate Planning for Non-U.S. Citizens Spouses
March 1, 2012 By German Law Group
When a married couple consists of two U.S. citizens, the estate planning rules treat them differently than if one spouse is a non-U.S. citizen or if both spouses are non-U.S. citizens. Although the differences may only affect the postponement of Federal estate taxes, the marital deduction set forth in the Internal Revenue Code may affect your estate plans.
Typically, upon the death of one married spouse, the surviving spouse does not have to pay immediate Federal estate taxes on property transferred between them if the surviving spouse is a legal U.S. citizen. Known as the marital deduction, one spouse can leave an unlimited amount of property or money to the surviving spouse as long as the surviving spouse is a U.S. citizen.
However, the Internal Revenue Service (IRS) imposes a limit on the unlimited marital deduction for non-U.S. citizen, surviving spouses. Because the tax rules specify certain conditions that spouses must satisfy when transferring estate property at death between U.S. citizen spouses or non-U.S. citizen spouses, it is especially important for them to consult an estate planning attorney to help them understand the differences in the federal tax laws. Furthermore, estate planning attorneys can help them set up Qualified Domestic Trusts or “QDOTs” to help them minimize their immediate estate tax liabilities.
ABOUT THE AUTHOR: Raymond German
Experienced estate planning attorneys Grand Forks ND of the Raymond J. German, LTD. offers estate planning and business planning resources to residents of Grand Forks ND.
Copyright German Law Group
More information about German Law Group
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
However, the Internal Revenue Service (IRS) imposes a limit on the unlimited marital deduction for non-U.S. citizen, surviving spouses. Because the tax rules specify certain conditions that spouses must satisfy when transferring estate property at death between U.S. citizen spouses or non-U.S. citizen spouses, it is especially important for them to consult an estate planning attorney to help them understand the differences in the federal tax laws. Furthermore, estate planning attorneys can help them set up Qualified Domestic Trusts or “QDOTs” to help them minimize their immediate estate tax liabilities.
ABOUT THE AUTHOR: Raymond German
Experienced estate planning attorneys Grand Forks ND of the Raymond J. German, LTD. offers estate planning and business planning resources to residents of Grand Forks ND.
Copyright German Law Group
More information about German Law Group
View all articles published by German Law Group
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
