When you are planning your estate and your spouse is not a US citizen, there is something very important to consider.
Property that passes from the decedent spouse to the surviving spouse by reason of the decedent spouse’s death passes free of federal estate tax. This is due to the marital deduction. The amount of the marital deduction is unlimited and therefore not subject to any ceiling. It has the effect of postponing the federal estate taxation of property that passes from the decedent spouse to the surviving spouse until the surviving spouse’s death to the extent that the property is not expended by the surviving spouse during his or her lifetime. However, this estate tax deferral opportunity is somewhat limited when the surviving spouse is not a US citizen.
To continue reading our Trust Counsel’s, Ted M. Greenberg’s, full article on the topic of Estate Planning Considerations for the Non-Citizen Spouse please click the following graphic below.