Estate and Gift Tax Chart for Non US Persons (Greencard Holders and NRA’s)
The chart includes the IRS tax adjustments for tax year 2021 and updates the exemption and exclusions for estate and gift tax for Non US Persons.
The current rate of taxation for taxable gifts and bequests is 40%. “Amounts gifted beyond the annual gift exclusions and beyond the lifetime applicable exclusion would be taxed at that rate. Likewise, at death, any taxable bequest beyond the lifetime applicable exclusion is taxed at 40%.” However, not all gifts are taxable. For example, gifts and bequests to US citizen spouses are not taxed.
United States Citizens and Permanent Residents are subject to United States estate and gift tax on worldwide assets. Further, US citizen spouses can receive lifetime gifts at death from their spouse at an unlimited amount. ” With respect to bequests at death, a non-US citizen spouse can receive the benefits of citizen status through the use of a Qualified Domestic Trust (“QDOT”), where the estate tax is deferred until actually paid out to the non-citizen spouse, or the spouse does at some point become a citizen.”
The Applicable Exclusion Amount is “the amount transferred prior to death that can be transferred free of gift tax.” Upon death, the same Applicable Exclusion amount will apply, apart from any portion that was used to eliminate the gift tax during life. These portions will reduce the amount available at death.
See Estate and Gift Tax Chart for Non US Persons (Greencard Holders and NRA’s) , Probate Stars, (last visited November 9, 2020).