Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
JonBeer: "2) We're both Greencard holders, but not citizens. A financial advisor who is trying to sell me life insurance tells me that as non-citizens we get only a $13k exemption from estate tax, and that spouse to spouse transfers are taxable at the full rate on death."

I am out of my pay grade here, too, but I do not think that 13k is correct for FET purposes, but I do know that the unlimited marital exemption does not apply when the surviving spouse is an alien.


The US government does not want the surviving, alien spouse departing with all the funds and totally escaping the the FET.

When the surviving spouse is a US citizen, the US government knows that it will eventually receive either gift or estate taxes (unless all the money is spent).

See also:

If you both become US citizens, this issue would go away for you.

Regards, JAFO
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.