Inheritance Tax
Feb 13th 2007, 2:08 pm
#16
Homebody
Joined: Jan 2005
Location: HOME
Posts: 23,179
Re: Inheritance Tax
the estate tax laws was changed in the last few years, it seems to me that if your US citizen spouse dies it is no different if you are a PR than if you are a citizen.
http://www.dkosopedia.com/wiki/Feder...state_Taxation
http://www.dkosopedia.com/wiki/Feder...state_Taxation
Feb 13th 2007, 2:23 pm
#19
Concierge
Joined: Apr 2001
Posts: 46,383
Re: Inheritance Tax
I printed it out and did a quick scan and found it right away. Just lucky I guess.
Also it says for US Citizen, non-citizens, residents and non-residents. At least it is a starting point on the inheritance tax percentages. So it would apply if both are residents only.
Feb 13th 2007, 3:36 pm
#20
BE Enthusiast
Joined: Nov 2006
Location: Oregon
Posts: 612
Re: Inheritance Tax
This article http://www.dkosopedia.com/wiki/Feder...state_Taxation
does not address the specific situation of LPR/USC or LPR/LPR married couples.
The point where LPRs are treated differently when it comes to Estate tax in the USA with the IRS is that a surving spouse who is an LPR does not get
"the Marital Deduction".
All joint property - cash, houses etc is assumed to belong to the first spouse to expire, if the survivor is an LPR. And this would be assessed for estate tax ( at the thresholds and percentages in effect at the time for estate tax generally.
So if your USC or LPR spouse dies and you are an LPR the result tax wise is; it's as though you were not married.
The reason the Government came up with this is they were afraid the LPR would take the money and run (home).
You could file a QDOT though.
does not address the specific situation of LPR/USC or LPR/LPR married couples.
The point where LPRs are treated differently when it comes to Estate tax in the USA with the IRS is that a surving spouse who is an LPR does not get
"the Marital Deduction".
All joint property - cash, houses etc is assumed to belong to the first spouse to expire, if the survivor is an LPR. And this would be assessed for estate tax ( at the thresholds and percentages in effect at the time for estate tax generally.
So if your USC or LPR spouse dies and you are an LPR the result tax wise is; it's as though you were not married.
The reason the Government came up with this is they were afraid the LPR would take the money and run (home).
You could file a QDOT though.
Feb 13th 2007, 4:07 pm
#21
Homebody
Joined: Jan 2005
Location: HOME
Posts: 23,179
Re: Inheritance Tax
This article http://www.dkosopedia.com/wiki/Feder...state_Taxation
does not address the specific situation of LPR/USC or LPR/LPR married couples.
The point where LPRs are treated differently when it comes to Estate tax in the USA with the IRS is that a surving spouse who is an LPR does not get
"the Marital Deduction".
All joint property - cash, houses etc is assumed to belong to the first spouse to expire, if the survivor is an LPR. And this would be assessed for estate tax ( at the thresholds and percentages in effect at the time for estate tax generally.
So if your USC or LPR spouse dies and you are an LPR the result tax wise is; it's as though you were not married.
The reason the Government came up with this is they were afraid the LPR would take the money and run (home).
You could file a QDOT though.
does not address the specific situation of LPR/USC or LPR/LPR married couples.
The point where LPRs are treated differently when it comes to Estate tax in the USA with the IRS is that a surving spouse who is an LPR does not get
"the Marital Deduction".
All joint property - cash, houses etc is assumed to belong to the first spouse to expire, if the survivor is an LPR. And this would be assessed for estate tax ( at the thresholds and percentages in effect at the time for estate tax generally.
So if your USC or LPR spouse dies and you are an LPR the result tax wise is; it's as though you were not married.
The reason the Government came up with this is they were afraid the LPR would take the money and run (home).
You could file a QDOT though.
Feb 13th 2007, 4:37 pm
#22
BE Enthusiast
Joined: Nov 2006
Location: Oregon
Posts: 612
Re: Inheritance Tax
Elvira
A QDOT trust member could be your lawyer or accountant. Some one who is "guaranteeing" that estate taxes would be paid ( if they were due) when the remaining LPR spouse dies.
Or if you are eligible, the simplist thing to do is become a USC.
But you have to have it completed before the Estate tax return (of first spouse) is finalised.
That's what prompted me to do it. Otherwise to do the "renounce, abjure, revoke bit" is ... well...
I do wish we had the Blue Hair Raising face to work with still.
Farmerwife ( BTW, Mr Farmer is still alive and well)
A QDOT trust member could be your lawyer or accountant. Some one who is "guaranteeing" that estate taxes would be paid ( if they were due) when the remaining LPR spouse dies.
Or if you are eligible, the simplist thing to do is become a USC.
But you have to have it completed before the Estate tax return (of first spouse) is finalised.
That's what prompted me to do it. Otherwise to do the "renounce, abjure, revoke bit" is ... well...
I do wish we had the Blue Hair Raising face to work with still.
Farmerwife ( BTW, Mr Farmer is still alive and well)
Feb 13th 2007, 4:40 pm
#23
Homebody
Joined: Jan 2005
Location: HOME
Posts: 23,179
Re: Inheritance Tax
Elvira
A QDOT trust member could be your lawyer or accountant. Some one who is "guaranteeing" that estate taxes would be paid ( if they were due) when the remaining LPR spouse dies.
Or if you are eligible, the simplist thing to do is become a USC.
But you have to have it completed before the Estate tax return (of first spouse) is finalised.
That's what prompted me to do it. Otherwise to do the "renounce, abjure, revoke bit" is ... well...
I do wish we had the Blue Hair Raising face to work with still.
Farmerwife ( BTW, Mr Farmer is still alive and well)
A QDOT trust member could be your lawyer or accountant. Some one who is "guaranteeing" that estate taxes would be paid ( if they were due) when the remaining LPR spouse dies.
Or if you are eligible, the simplist thing to do is become a USC.
But you have to have it completed before the Estate tax return (of first spouse) is finalised.
That's what prompted me to do it. Otherwise to do the "renounce, abjure, revoke bit" is ... well...
I do wish we had the Blue Hair Raising face to work with still.
Farmerwife ( BTW, Mr Farmer is still alive and well)
Feb 13th 2007, 5:02 pm
#24
The Unmod
Joined: Jul 2005
Location: Glen Mills, PA
Posts: 8,870
Re: Inheritance Tax
Go to:
http://www.irs.gov/pub/irs-pdf/i706.pdf --
See chart on page 4
Maximum tax percentage is 46% but that if the inheritance is over 2 million
Note: This amount for tax purposes is after deductions. State tax is no longer deductible but there is a provision on the form for an adjustment of some sort.
http://www.irs.gov/pub/irs-pdf/i706.pdf --
See chart on page 4
Maximum tax percentage is 46% but that if the inheritance is over 2 million
Note: This amount for tax purposes is after deductions. State tax is no longer deductible but there is a provision on the form for an adjustment of some sort.
Edit.2006 changes, here
Last edited by paddingtongreen; Feb 13th 2007 at 5:06 pm.
Feb 13th 2007, 5:45 pm
#27
Joined: Feb 2002
Posts: 6,848
Re: Inheritance Tax
This article http://www.dkosopedia.com/wiki/Feder...state_Taxation
The reason the Government came up with this is they were afraid the LPR would take the money and run (home).
You could file a QDOT though.
The reason the Government came up with this is they were afraid the LPR would take the money and run (home).
You could file a QDOT though.
Of course I bloody well would take the money and run home to the UK!
Don't see why they deem it fair to tax resident non-citizens more than citizens though....
Feb 13th 2007, 5:58 pm
#28
BE Enthusiast
Joined: Nov 2006
Location: Oregon
Posts: 612
Re: Inheritance Tax
No!!!!!!!
BE wouldn't be as much fun. Even tho' I don't join in all the time I do enjoy reading all the witty repartee
Seriously tho' . I thought this might be helpful. At least it factors in the (provided spouse is a USC bit) - which a lot of basic articles leave out.
http://www.smartmoney.com/estate/ind...tory=estatetax
And then there's the state's take on the $$$$$$$$$ money to consider also- depends on which state you live in for how much they want.
BE wouldn't be as much fun. Even tho' I don't join in all the time I do enjoy reading all the witty repartee
Seriously tho' . I thought this might be helpful. At least it factors in the (provided spouse is a USC bit) - which a lot of basic articles leave out.
http://www.smartmoney.com/estate/ind...tory=estatetax
And then there's the state's take on the $$$$$$$$$ money to consider also- depends on which state you live in for how much they want.
Feb 13th 2007, 6:04 pm
#29
Joined: Feb 2002
Posts: 6,848
Re: Inheritance Tax
Some interesting links here:
http://www.lisaelliottlaw.com/qdot.htm
http://www.lawattstimes.com/articles.../business2.txt
Below is info for dual nationals resident in the UK (which is where I hope to be when I'm an old lady LOL! and probably a dual national by then):
http://www.ft.com/cms/s/5dde7a66-1c1...00e2511c8.html
Difficult to make head or tail of this but this is for US citizens (or even dual US/UK citizens) in the UK; a House of Commons Standing Committee debate in June 2006 - read down from 'Column no. 651):
http://www.publications.parliament.u...m/60615s03.htm
US Taxation of Foreign Citizens (KPMG accountancy firm):
http://www.us.kpmg.com/microsite/ies...t/chapter8.htm
http://www.lisaelliottlaw.com/qdot.htm
http://www.lawattstimes.com/articles.../business2.txt
Below is info for dual nationals resident in the UK (which is where I hope to be when I'm an old lady LOL! and probably a dual national by then):
http://www.ft.com/cms/s/5dde7a66-1c1...00e2511c8.html
Difficult to make head or tail of this but this is for US citizens (or even dual US/UK citizens) in the UK; a House of Commons Standing Committee debate in June 2006 - read down from 'Column no. 651):
http://www.publications.parliament.u...m/60615s03.htm
US Taxation of Foreign Citizens (KPMG accountancy firm):
http://www.us.kpmg.com/microsite/ies...t/chapter8.htm
