Foreign Intrigue In Estate Planning

Are you married to someone who isn't a U.S. citizen? If you are, special estate planning considerations may come into play.

But things get trickier when your spouse inherits assets. Normally, property transferred from one spouse to another, during your lifetimes or when one of you dies, is completely exempt from gift or estate tax thanks to an unlimited marital deduction. But that doesn't apply to non-citizen spouses.

1. Have your spouse become a U.S. citizen. This can be an obvious solution. It allows your spouse to qualify for the unlimited marital deduction by the time your federal estate tax return is due. That's generally nine months after death, but the IRS may grant a six-month extension.

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This article was written by a professional financial journalist for Meg Green & Associates. and is not intended as legal or investment advice.

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