Estate Taxes for non citizens

[std]

I have recently been told that there is a difference in estate taxes wneh you are citizen and when you are not. Does anybody know anything on this subject? Is it true?

 

[leroythelion]

Originally posted by std
I have recently been told that there is a difference in estate taxes wneh you are citizen and when you are not. Does anybody know anything on this subject? Is it true?

Yes, it is true. I have read this in a few places and, admittedly, I have not followed up on it for myself. The difference comes into effect when the citizenship of the person who dies is not American. A significant portion of the estate will be taxed, more than a US Citizen. My understanding is that this can be solved by setting up a series of trusts. This is really complicated stuff and will almost surely require a pro.

Brian

 

[Sba]

Some of my senior colleagues who have been permanent residents for decades recently became citizens for just this reason. They found that setting up the trusts etc., even with professional help was non-trivial.

From what they told me, it isn't just the estate
of a non-citizen that is taxed. If the inheritor of the estate of a citizen is a non-citizen, the estate is taxed too.