Elvira

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?

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.

Elvira

What happens if both spouses are PRs and hold significant assets in their home country, aka the UK?

Angry White Pyjamas

And what happens if both PR's are via work and not marriage? Theres still substantial ties to the US in that case.

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?

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.

Chorlton

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

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.

Angry White Pyjamas

So if your planning a heart attack get yourself back to blighty sharpish.

Manc

or take the oath.........

Angry White Pyjamas

Can I wait another 4 years before the ticker gives out though is the question?

Manc

Life insurance benefits are not subject to tax.

insure your spouse to cover this eventuality.

I can recommend a great company

Elvira

But what if the assets are in the UK?

Could they still get their dirty little paws on them?

Angry White Pyjamas

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.

Elvira

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!