♠ Posted by Marc J. Soss in florida estate planning,Florida LLC attorney,florida probate attorney,florida probate lawyer,Last Will and Testament,Sarasota attorney,Sarasota Tax Lawyer at Friday, August 21, 2015
It is no surprise that foreign residents do not have the same estate or gift tax exemptions as a U.S. resident. In 2015, a U.S. resident may gift, during his or her lifetime, or bequeath upon death as much as $5.43 million. In contrast, a foreign national has an estate tax exemption of only $60,000. As a result, a foreign national who owns a $2 million house in the U.S. can expect their heirs to pay some $740,000 in estate taxes upon their death.
On the gift tax front, foreign
nationals should take advantage of their annual gift tax exemptions of $14,000.
However, unlike U.S. residents, they are limited to $147,000 in gifts to their
spouses before triggering estate and gift taxes. To avoid these tax issues,
many counsel their clients to establish off-shore entities to own the U.S.
assets.
It is important to note that Canadian citizens benefit from a treaty with the U.S. that allows them the same
exemptions as U.S. citizens.
