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2) This idea, used by many to avoid estate taxes, has prompted the Gov't to amend estate tax law so that if you renounce your citizenship, you owe estate taxes on your estate as of the day you renounce. So if you have any appreciable amount of money, you could loose up to 1/2 of it.

Actually, I don't think it works this way. I believe that if you die within 3 years of renouncing, you owe the standard estate tax, but if you die after the 3 year period, then you don't pay it.
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