Foreign Individuals: No Help From US Estate Tax Reform (Part I)

Prior to the actual passage of the “Tax Cuts and Jobs Act” (TCJA) on December 22 2017, there were some high expectations that the disparity in the US estate tax exemption for US and non-US persons would be eliminated, or that the US estate tax itself would be repealed. Unfortunately, neither of these hoped-for events eventually came to pass. With this harsh reality in mind, what does the foreigner need to know about the US estate tax? Unfortunately the US estate tax often catches the nonresident alien family by surprise.  Understanding the information in the following two-part tax blog post will prevent many such unpleasant surprises. Overview The US Estate tax rules apply to a US person (US citizen or “resident”) differently than to a non-US person (non-US citizen and non-US resident). The estate of a non-citizen who is treated as US “resident” will be taxed on the fair market value of all of the worldwide assets owned by the…

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