Hello Nikul

I understand that Estate Tax limit is 675K for year 2001. But does it apply only to people with US citizen ship? Is the rule different for GreenCard holders? ( A friend of mine told me that it is only 100K for Green Card holders) Is it going to change with tax reforms?

In general, omce an alien comes to the US and receives a Green card, he is treated the same as a citizen, with an estate tax on worldwide assets. Thus, a green card holder is entitled to the full 675k tax free this year, 1 million next year, etc.

If the surviving spouse is a non-citizen and inherits frm a taxable estate, the estate does not receive the unlimited spousal transfer tax deduction. So, citizenship can be an advantage for married spouses with estates larger than the minimum.

100K is the exempt amount for estates of non-resident aliens, taxable only on their US assete.

Bill Patch