Amounts gifted beyond the annual gift exclusion are taxed at a 40% rate; however, not all gifts are taxed, like those to US citizen spouses and charities. Subsequently, US citizens and permanent residents are subject to the US estate and gift tax on their worldwide assets. On the other hand, non-US citizen spouses receive taxes on gifts. These non-US citizens can receive the benefits of citizen status by using a Qualified Domestic Trust in which the estate tax is deferred until actually paid out. Take a look at the chart in the Article to see how estate and gift taxes are applied for US and non-US citizens.
See 2017 Estate and Gift Tax for Non-US Citizens, Clark Skatoff Attorneys at Law, 2016.
