The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Tax implications on Resident Aliens||Date: 6/24/2001 6:34 PM|
|Author: WPatch||Number: 52048 of 122105|
US citizen have an unlimited spousal estate and gift tax exclusion; gifts and inheritances flow between spouses both before and after death tax free. Using an AB bypass trust, they can double the current $675,000 their heirs can inherit tax free on the death of the second spouse.
Suggestions: 1) don't let them die this year. Next year and thereafter an indidual resident alien can transfer estate tax free $1,000,000.
2) if ill health, etc. make 1) impossible, consider a QDOT, a Qualified DOmestic Trust.
3)Make gifts between spouses durind life to keep estate less thn $1,000,000.
4) Have the first to die parent leave some to the children.
The new tax law has greatly simplified their estate tax problem, and that of most resident aliens.
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