There have been several good discussions on this forum about the significant benefits of US citizenship. I agree that most of us are going through this sometimes frustrating process for the lofty rights, freedoms and privileges we can then enjoy under the Constitution and legal framework of the States. However, I also firmly believe that the gap between US Citizens and Legal Residents will continue to surreptitiously widen. There is no knowing what future, retroactive, legislation might be introduced that will further emphasize this difference.
On a more mundane level, there is also a qualitative benefit to US citizenship and that is the 100% spousal exception (or marital deduction) from estate tax. In 1988, Congress passed the Technical and Miscellaneous Revenue Act which eliminated the opportunity for a non-citizen spouse to take advantage of the unlimited marital deduction for gift and estate tax purposes. Prior to this change, either a citizen or resident could make transfers of unlimited amounts by gift or inheritance without tax consequences.
I am a permanent resident married to a US citizen. If I meet with an early demise, my spouse has no estate tax liability. If my spouse predeceases me, I am subject to estate tax on 50% of our combined net worth, less any allowed deductions. See http://library.findlaw.com/1998/Apr/1/131148.html or http://www.hg.org/articles/article_1031.html etc etc.
I say “qualitative” because, on a quantitative basis, nearly all of us on this forum would currently be exempt, because of the very large allowed deductions (or excluded amounts). However, Congress could, and probably will, decrease these deductions and possibly even increase the estate tax rate at some point in the not-too-distant future.
On a more mundane level, there is also a qualitative benefit to US citizenship and that is the 100% spousal exception (or marital deduction) from estate tax. In 1988, Congress passed the Technical and Miscellaneous Revenue Act which eliminated the opportunity for a non-citizen spouse to take advantage of the unlimited marital deduction for gift and estate tax purposes. Prior to this change, either a citizen or resident could make transfers of unlimited amounts by gift or inheritance without tax consequences.
I am a permanent resident married to a US citizen. If I meet with an early demise, my spouse has no estate tax liability. If my spouse predeceases me, I am subject to estate tax on 50% of our combined net worth, less any allowed deductions. See http://library.findlaw.com/1998/Apr/1/131148.html or http://www.hg.org/articles/article_1031.html etc etc.
I say “qualitative” because, on a quantitative basis, nearly all of us on this forum would currently be exempt, because of the very large allowed deductions (or excluded amounts). However, Congress could, and probably will, decrease these deductions and possibly even increase the estate tax rate at some point in the not-too-distant future.