Everyone needs an estate plan that includes the minimum of a will or trust, a healthcare directive and power of attorney. But if you are also a non-resident or non-citizen, estate planning has more specific needs. The amounts of estate taxes and gift taxes all change when the person giving or receiving is not a citizen of the United States. It’s not surprising that there are more estate planning issues for non-residents and non-citizens than ordinary US citizens.
IRS tax issues are a huge concern when setting up your estate plan. You want to leave your loved ones the land and assets you have acquired without having it all heavily taxed. If you are a US citizen, your estate is allowed a $12 million deduction when you pass away. That means that your family will not be taxed if your estate is worth less than $12 million. But if you are a non-citizen, your deduction is only $60,000.00. As you can see, the difference is quite large.
So what can you do?
There are unique estate planning issues for non-citizens and non-residents. One option is that you may choose to have a trust established instead of leaving your assets in a will. A Qualified Domestic Trust (QDOT) can allow tax deductions you would not ordinarily receive. This is only one option, your estate planning attorney will advise you based on your unique situation.
When you are not a resident or citizen of the United States but still own property or assets, your estate plan must be set up differently. You want to leave the most you can to your loved ones. Working with an experienced estate planning attorney who understands international issues can help. You need someone on your side who knows the tax ramifications and can help you avoid them. From establishing trusts to explaining gift taxes, we can help you.
Having an estate plan is essential. But the estate plan is different for non-citizens or non-residents. You have additional tax considerations and must understand how to leave your assets to your loved ones. Prepare for the future by contacting the experienced estate planning attorneys at the Estate and Probate Legal Group. Call us today at 630-864-5835.
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