Inheritance Law & Estate Tax with U.S. Property to Non-U.S. Citizens and/or Residents

Inhering property is daunting enough. Imagine having to do that if you are not a citizen of the country where your relative has left you property; things can get stressful and legal expertise in this area can go a long way to ease not only your stress level but to alleviate any tax or legal ramifications that you may not be aware of.

If a relative passes away, is a U.S. citizen, and the property is the United States, the court handling probate would be where the relative lived. Note that none of this has anything to do with the nationality of the relative outside of the U.S. But a non-U.S. citizen would need a U.S. attorney to help them take care of the paperwork.

For tax, as a non resident U.S. or non-citizen tax person own (inherit) real property, there is consideration as to estate tax and gift tax. Since U.S. Estate Tax rules vary depending on the type of property/asset/account the foreign national invests in. For purposes of Estate Tax, a Foreign Person/Non-Resident generally includes a person who:

Is a Non-U.S. Citizen/Non-Legal Permanent Resident who does not meet the Domicile Rule for Estate Tax purposes.

There are different paths to take to inherit something with the less headache and stress involved for a non-U.S. citizen or resident, so let us help guide you through these legal minefields.