Book Two: The U.S. Estate and Tax and the Non-Citizen

  Introduction  1
Overview of the U.S. Estate and Gift Tax  3
Determining One’s U.S. Estate Tax Status  7
    Definition of U.S. Citizenship  7
    Non-Citizens: Residency and the Concept of Domicile  8
Estate and Gift Tax Imposed on U.S. Citizens and Resident Non-Citizens 15
    “Worldwide Assets” 15
    Transfers Between U.S. Citizen Spouses 16
Testamentary Transfers to Non-Citizen Spouses 19
      Marital Deduction for Bequests 19
      Qualified Domestic Trusts 19
Lifetime Gifts To Citizen and Non-Citizen Spouses 23
Estate Tax Imposed on Non-Resident Non-Citizens 25
    Property “Situated in the United States” 25
    Rate of Estate Tax and Credit 26
Gift Tax on Non-Resident Non-Citizens 29
Unique Asset Considerations for Non-Resident Non-Citizens 33
    Transfers of Intangible Property 33
    Bank Deposits 34
    U.S. Bonds 37
    Life Insurance 37
Shifting Assets From U.S. Situs 41
    Real Property 42
    Partnerships 43
Pre-Immigration Planning 47
    Gifting Assets Prior to Residency 47
    Selling Appreciated Assets 48
  Conclusion 51

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