Special Considerations for International Couples
While a foreign spouse could still benefit from a beneficiary designation or a revocable living trust, there are certain, special rules on the transfer of wealth and assets.
Transfer Rules
You May Not Be Eligible for Unlimited Marital Deductions
When a spouse passes away, any assets they leave to a surviving spouse are typically exempt from federal estate taxes. However, this exemption is not applicable to non-U.S. citizen spouses, who may be compelled to pay federal estate taxes on their inheritance.
Your Spouse Might Have to Pay Gift Taxes
If your spouse is a U.S. citizen, any gifts you give to them during your lifetime cannot be taxed. However, non-citizen spouses may only receive up to $164,000 per year in tax-exempt gifts.
Your Property Rights May Not Be Co-Equal
A surviving spouse may not be entitled to co-equal rights in a home if they cannot provide evidence of their own payment history. In such cases, the entire value of a home could be included in a taxable estate, unless the home has been transferred to the possession of a revocable living trust.
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