{"id":468,"date":"2011-12-15T20:25:40","date_gmt":"2011-12-15T20:25:40","guid":{"rendered":"http:\/\/www.uspropertyownersabroad.com\/?p=57"},"modified":"2011-12-15T20:25:40","modified_gmt":"2011-12-15T20:25:40","slug":"an-introduction-to-the-u-s-estate-tax-system-for-nonresident-aliens","status":"publish","type":"post","link":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/an-introduction-to-the-u-s-estate-tax-system-for-nonresident-aliens\/","title":{"rendered":"An Introduction to the U.S. Estate Tax System for Nonresident Aliens"},"content":{"rendered":"


\n<\/strong><\/p>\n

As the saying goes, there\u2019s nothing more certain than death and taxes<\/strong>. That phase comes to life, pardon the expression, when a person dies owning property. If the property is located in the United States or is consider \u201cU.S. property\u201d at the time of the owner\u2019s death, even if the deceased was a non-resident foreigner, the property is subject to U.S. Estate Tax and an estate tax filing must be made.<\/p>\n

One tidbit: shares in a company that is incorporated in the United States, even if traded on a non-U.S. stock exchange, are U.S. property; shares in a non-U.S. company, even if traded on a U.S. stock exchange, are not U.S. property.<\/p>\n

Let me say up front that even the U.S. Internal Revenue Service acknowledges that U.S. estate tax is a particularly complex area of an already complicated U.S. tax system. To make matters worse, U.S. estate tax is also constantly changing.<\/p>\n

US estate tax law assumes that all inheritance and transfer-on-death regimes operate as in the United States. Of course, that is not true. Many countries do not have \u201cestates\u201d as we understand them here. Regardless of how those who are responsible for handling the property of a deceased person are legally required to operate in their own countries, if they learn that the deceased owned \u201cU.S. property\u201d at death, they need to address U.S. estate tax compliance.<\/p>\n

When U.S. property is involved, foreign \u201cestates\u201d must address a number of questions. Is the \u201cestate\u201d required to file a U.S. estate tax return? If the \u201cestate\u201d is required to file a return, when is it due? How is that done? What assets should be included or excluded in the \u201cU.S. estate\u201d? Who has to file a return on behalf of the \u201cestate\u201d? How are the assets valued? Does the deceased\u2019s country have a gift and estate tax treaty with the U.S.? Is it advantageous? Is the estate or any of its beneficiaries now subject to other taxes within the U.S.?<\/p>\n

Tax professionals can help navigate the US estate tax system. Going it alone on U.S. estate tax compliance is not wise. That is what we do: help people understand U.S. estate taxes, take advantage of the U.S. gift and estate tax treaty regimes where relevant, and reduce the stress of tax compliance. For foreign persons handling U.S. estate taxes, expert assistance can save time, money and hassles with the U.S. tax authority, the Internal Revenue Service.<\/p>\n

IMPORTANT NOTICE TO READERS<\/strong><\/p>\n

The information contained on this blog is not legal advice. \u00a0It is provided only as general information, and may or may not reflect the most up-to-date legal developments. \u00a0This information is not provided in the course of, and receipt of it does not constitute, an attorney-client relationship.\u00a0 It certainly does not substitute for obtaining legal advice from a licensed attorney. \u00a0Legal advice should take into account the specific facts and circumstances applicable to each individual situation. \u00a0Viewing this site and reading this blog does not create an attorney-client relationship between you and our firm.\u00a0 Likewise, sending me an email does not create an attorney-client relationship between you and the firm.\u00a0\u00a0 While I would be happy to hear from you, Flott & Co. PC cannot represent you until we have determined that doing so will not be a conflict of interest. \u00a0The only way for you to initiate legal representation with the firm is to call me at\u00a0(703) 525-5110\u00a0(X122). \u00a0If and when Flott & Co. PC \u00a0enters into an engagement agreement with you, you will be a client of the firm, at which time we will be able to exchange information freely.<\/p>\n

Unless otherwise indicated by Flott & Co. PC in writing, any US federal tax advice contained in this blog is not intended or written to be used, and cannot be used, for either (i) avoiding penalties under the US Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matter addressed within. For further information regarding this notice, please see\u00a0http:\/\/www.flottco.com\/emailnotice.pdf<\/wbr><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

As the saying goes, there\u2019s nothing more certain than death and taxes. That phase comes to life, pardon the expression, when a person dies owning property. If the property is located in the United States or is consider \u201cU.S. property\u201d at the time of the owner\u2019s death, even if the deceased was a non-resident foreigner,…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,17,11],"tags":[22],"class_list":["post-468","post","type-post","status-publish","format-standard","hentry","category-irs-news","category-us-taxation","category-us-tax-returns-for-non-residents","tag-jeanne-franklin"],"_links":{"self":[{"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/posts\/468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/comments?post=468"}],"version-history":[{"count":0,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/posts\/468\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/media?parent=468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/categories?post=468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.flottco.com\/doingbusinessacrossborders\/wp-json\/wp\/v2\/tags?post=468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}