US Citizenship - any reason not to?
#47
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Joined: Jan 2016
Location: Cambridge, MA
Posts: 237
Re: US Citizenship - any reason not to?
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?
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?
#48
Re: US Citizenship - any reason not to?
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?
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?
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
#49
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Thread Starter
Joined: Jan 2016
Location: Cambridge, MA
Posts: 237
Re: US Citizenship - any reason not to?
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
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
#50
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.
#51
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Joined: Jan 2016
Location: Cambridge, MA
Posts: 237
Re: US Citizenship - any reason not to?
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.
#52
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.