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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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