"HW \"Skip\" Weldon" <skip5700removethis[at]hotmail.com> wrote:

- quote -

Right. Property that goes to a non-citizen spouse does not
qualify for the unlimited marital deduction because the
government is afraid the surviving spouse will leave the
country and they wouldn't be able to recoup their estate
taxes when that spouse dies.

A specific sort of marital trust will qualify, however. It
is required to have provisions that the funds will remain in
the US, so that it will be taxed in the second spouse's
estate, no matter where she dies.

Stu

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HW \"Skip\" Weldon" <skip5700removethis[at]hotmail.com> wrote:

- quote -

Yes it is true and not just any trust will do. The trust
has to be a QDOT, see Sections 2056(d)(2) and 2056A. There
is also an exception if the surviving spouse becomes a
citizen before the estate return is filed and was a resident
at all times after death - see 2056(d)(4).

The estate tax is the same, just no marital deduction. So
everyone is treated as not a spouse.

---
Drew Edmundson, CPA
Cary, NC

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Husband and wife long-term US residents, each on Green Card.

My understanding is that unless trusts are used, there is no
spousal unlimited marital deduction for US Federal Estate
Tax for Green Card holders.

Is that correct, and if so, what is the federal estate tax
starting point for non-US Citizens?

-HW "Skip" Weldon
Columbia, SC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >