International Considerations in Estate Planning
International estate planning issues are not rare these days. They arise for U.S. citizens who own property internationally and U.S. Resident Aliens with holdings outside the country. They also occur for Non-Resident Aliens with property in the U.S. In addition to these groups, any beneficiary of international assets may need legal support.
Individuals from these groups would be wise to seek advice from an attorney experienced in international estate planning.
Helping U.S. Citizens With International Holdings Plan Ahead
Owning international assets as a U.S. citizen raises several questions involving estate planning. Your U.S.-based estate plan might not be enough to shift ownership of international assets effectively. It’s frequently necessary to create an additional estate plan in the country or countries where your international assets are located.
Working with an attorney who understands international estate planning can help you create plans that work together. Having plans in place can help you avoid or minimize exposure to the probate process in the U.S. or elsewhere.
Helping U.S. Resident Aliens With International Holdings Plan Ahead
U.S. Resident Aliens, also called “Green Card Holders,” often own property in their native land. They also often have loved ones there to whom they want to leave assets. These international connections raise important estate planning issues.
In this regard, U.S. Resident Aliens are in a better position than Non-Resident Aliens because they’re eligible for a larger U.S. gift and estate tax exemption.
However, they’re not entitled to the unlimited marital deduction granted to U.S. citizens. As a result, they may have estate tax liability upon the death of a spouse. To avoid this, U.S. Resident Aliens need a Qualified Domestic Trust (“QDOT”).
If you’re a Green Card Holder, an international estate planning attorney will be vital. They’ll help you get the full benefit of the QDOT and other tools.
Helping Non-Resident Aliens With International Estate Planning
Non-Resident Aliens are often unaware that there will be U.S. estate tax liability for their U.S. holdings.
Unlike U.S. Citizens and Green Card Holders, Non-Resident Aliens only qualify for a $60,000 estate tax exemption on their U.S. assets. Any U.S. assets owned by Non-Resident Aliens beyond the $60,000 exemption limit will be taxed at a 40% estate tax rate.
Real estate is a popular investment among many Non-Resident Aliens, making estate tax liability a serious concern. Are U.S.-based assets part of your portfolio? When you die, or if you try to gift the assets to someone, you will probably be subject to that 40% rate.
If you are a Non-Resident Alien who owns assets in the U.S., you need to plan ahead. With the help of an international estate planning attorney, you can avoid unnecessary tax liability.
Helping Non-Resident Aliens Planning to Become U.S. Citizens or Residents With International Estate Planning
There are estate planning choices to consider before applying for a U.S. visa if you’re a Non-Resident Alien.
The decision to pursue U.S. Resident or citizen status is based on many factors, both personal and professional. Still, it’s a good idea to understand the tax implications of changing your status. This includes potential liability for estate and gift taxes.
By working with a lawyer experienced in international estate planning, you can get help limiting your liability for U.S. estate and gift taxes. This goes both for assets owned inside or outside the United States.
International Estate Planning Guidance You Can Count On
At the Law Office of Janet L. Brewer, our skilled attorneys can help with all your international estate planning needs. Our Los Altos team has extensive experience in the complex estate and gift tax issues raised by international estate planning. Call us today at 650-325-8276 or contact us online.
