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PRs and inheritance tax - at a disadvantage?

PRs and inheritance tax - at a disadvantage?

Old Dec 16th 2005, 5:14 pm
  #1  
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Default PRs and inheritance tax - at a disadvantage?

This was asked by someone on the US Immigration board, but perhaps this is a better place to ask:

In the event of the death of a USC spouse of a Permanent Resident Alien, what happens re. inheritance tax? Are PRs at a disadvantage compared to USCs? Does the PR lose a large proportion of the estate regardless of whether property, investments, savings are held jointly, solely in the name of
the US citizen or solely in the name of the permanent resident alien?

What if both spouses are PRs?

DAK?
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Old Dec 16th 2005, 5:27 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

The US government presumes that as their is nothing holding the PR to the country (if in the event of a USC spousal death) then they would rather not the PR take the $$$'s out of the country and yes, take a considerable chunk I believe.

I dunno if this is above a certain dollar limit, but yes, it is the case in theory.
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Old Dec 16th 2005, 5:31 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Manc
The US government presumes that as their is nothing holding the PR to the country (if in the event of a USC spousal death) then they would rather not the PR take the $$$'s out of the country and yes, take a considerable chunk I believe.

I dunno if this is above a certain dollar limit, but yes, it is the case in theory.

What happens if both spouses are PRs and hold significant assets in their home country, aka the UK?
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Old Dec 16th 2005, 5:33 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Elvira
What happens if both spouses are PRs and hold significant assets in their home country, aka the UK?
And what happens if both PR's are via work and not marriage? Theres still substantial ties to the US in that case.
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Old Dec 16th 2005, 5:36 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

I have no idea

As I said, the US government presumes

You could argue the toss all you wanted, but how well are you at argueing with a Federal Government when it wants half your money?
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Old Dec 16th 2005, 5:38 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Manc
I have no idea
And you call yourself a moderator? A leader of men (and women)? A font of all knowledge!!? Preposterous!

Originally Posted by Manc
As I said, the US government presumes

You could argue the toss all you wanted, but how well are you at argueing with a Federal Government when it wants half your money?
Pretty shite to be honest. I do feel they have the upper hand in most negotiations.
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Old Dec 16th 2005, 5:58 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Angry White Pyjamas
And you call yourself a moderator? A leader of men (and women)? A font of all knowledge!!? Preposterous!



Pretty shite to be honest. I do feel they have the upper hand in most negotiations.

As a spouse, if everything was jointly owned prior to a death, then would anyone else be able to touch it?
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Old Dec 16th 2005, 6:03 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Chorlton
As a spouse, if everything was jointly owned prior to a death, then would anyone else be able to touch it?

In the US for US estates there is an amount which is tax free from federal taxes up to a certain amount. In NY State there is also in place an amount which is tax free from taxes. However, it is my understanding and this was a major issue after 9/11/01, the PR's do not get the same tax break that US citizens do and have to pay taxes on the full amount of the estate.

If anything has changed regarding this since 2001, I have not heard.
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Old Dec 16th 2005, 6:08 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Rete
In the US for US estates there is an amount which is tax free from federal taxes up to a certain amount. In NY State there is also in place an amount which is tax free from taxes. However, it is my understanding and this was a major issue after 9/11/01, the PR's do not get the same tax break that US citizens do and have to pay taxes on the full amount of the estate.

If anything has changed regarding this since 2001, I have not heard.
So if your planning a heart attack get yourself back to blighty sharpish.
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Old Dec 16th 2005, 6:14 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Angry White Pyjamas
So if your planning a heart attack get yourself back to blighty sharpish.
or take the oath.........
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Old Dec 16th 2005, 6:15 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Manc
or take the oath.........
Can I wait another 4 years before the ticker gives out though is the question?
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Old Dec 16th 2005, 6:20 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Angry White Pyjamas
Can I wait another 4 years before the ticker gives out though is the question?
Life insurance benefits are not subject to tax.

insure your spouse to cover this eventuality.

I can recommend a great company
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Old Dec 16th 2005, 6:21 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Manc
I have no idea

As I said, the US government presumes

You could argue the toss all you wanted, but how well are you at argueing with a Federal Government when it wants half your money?

But what if the assets are in the UK?

Could they still get their dirty little paws on them?
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Old Dec 16th 2005, 6:21 pm
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Manc
Life insurance benefits are not subject to tax.

insure your spouse to cover this eventuality.

I can recommend a great company
Based in Michigan by any chance are they? That sounds like direct advertising to me...i'll have to report you to a moderator my old son.
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Old Dec 16th 2005, 6:22 pm
  #15  
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Default Re: PRs and inheritance tax - at a disadvantage?

Originally Posted by Manc
Life insurance benefits are not subject to tax.

insure your spouse to cover this eventuality.

I can recommend a great company

I take your point but the idea of having to take life assurance for the sake of the US IR rather than my kids grates somehow!
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