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US Citizenship - any reason not to?

US Citizenship - any reason not to?

Old Jan 19th 2018, 6:56 pm
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Default Re: US Citizenship - any reason not to?

Originally Posted by iceflow
So looking at the pdf it still looks to me that LPR decedent to LPR spouse estate transfer, the estate would still get the $5.49 million lifetime exemption against estate tax, or am I missing something here?

Thanks
Look at page 2, Non-Resident Alien (US Situs property)
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Old Jan 20th 2018, 9:26 pm
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Default Re: US Citizenship - any reason not to?

Originally Posted by mrken30
Look at page 2, Non-Resident Alien (US Situs property)
How does that relate to iceflow's comment about LPR decedent to LPR spouse estate transfer. I'm reading this the same, that the estate would still get the $5.49 million lifetime exemption against estate tax, or am I missing something here?

My conclusion of the Non Citizen Estate and Gift Tax Chart is that the only different between two people who are both LPR vs 2 people who are US Citizens is the 'Unlimited Marital Deduction'. So unless your estate is worth more than 5.49M there is no advantage in being a US Citizen when it comes to your spouse inheriting your estate. Am I reading it wrong?
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Old Jan 21st 2018, 1:02 am
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Default Re: US Citizenship - any reason not to?

Originally Posted by Mercury39
How does that relate to iceflow's comment about LPR decedent to LPR spouse estate transfer. I'm reading this the same, that the estate would still get the $5.49 million lifetime exemption against estate tax, or am I missing something here?

My conclusion of the Non Citizen Estate and Gift Tax Chart is that the only different between two people who are both LPR vs 2 people who are US Citizens is the 'Unlimited Marital Deduction'. So unless your estate is worth more than 5.49M there is no advantage in being a US Citizen when it comes to your spouse inheriting your estate. Am I reading it wrong?
This article may explain the US situs property aspect a bit better.

U.S. Securities and Other "U.S. Situs Property" - U.S. Estate Tax Issues for Canadian Residents Who are Not U.S. Citizens or Residents
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Old Jan 21st 2018, 1:42 am
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Default Re: US Citizenship - any reason not to?

Originally Posted by mrken30
Thanks, useful information for a non-resident, but can't see how it it is relevant to the situations of estate tax on LPR when the recipient is also LPR. Am I missing something as to why you are pointing us to rules for non-residents that I'm not understanding how it relates to LPRs?
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Old Jan 21st 2018, 1:49 am
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Default Re: US Citizenship - any reason not to?

You're fine as long as you both live in the US. However if you leave, there may be heavy inheritance tax penalties on your US assets if you are not a USC.
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Old Jan 21st 2018, 1:54 am
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Default Re: US Citizenship - any reason not to?

Originally Posted by mrken30
You're fine as long as you both live in the US. However if you leave, there may be heavy inheritance tax penalties on your US assets if you are not a USC.
ah ha, got it, thanks, I hadn't thought about that part. That then does add as a positive to becoming a citizen, because then even if we moved back to the UK and something happened to one of us we would have no estate tax. Thanks, these posts have helped clarify a few things.
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Old Jan 21st 2018, 1:57 am
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Default Re: US Citizenship - any reason not to?

As a UK citizen/resident it doesn't matter as long as the treaty is in place. You are treated like a USC, from my understanding. I may be wrong.
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