Estate Tax Issues for Taxpayers with Non-Citizen Spouses

Author: Klaralee R. Charlton

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Many taxpayers are married to individuals who are not United States citizens. For these taxpayers, the typical transfer tax protection found in the unlimited marital deduction is unavailable. For these taxpayers, strategically owning assets and utilizing the qualified domestic trust is critical to mitigating estate tax on the death of the citizen spouse. In this course, we will identify the differences in marital transfers between citizen and non-citizen spouses and understand how assets can be administered after the death of the citizen spouse to mitigate estate tax. Participants will also learn how the couple can plan during life to mitigate estate tax when the surviving spouse dies—particularly when non-US assets are owned.

Publication Date: August 2024

Topics Covered

• Overview of Gift & Estate Tax
• Unlimited Martial Deduction
• Qualified Domestic Trusts
• Gifting to Noncitizen Spouse
• Portability for Noncitizen Spouse
• Income Tax & Other Reporting Considerations

Learning Objectives

• Identify the differences between transfers to citizen and non-citizen spouses for purposes of estate and gift tax
• Identify how to transfer assets to non-citizen spouses while mitigating estate and gift tax
• Identify opportunities for asset balancing when assets are located outside the US
• Identify the best estate planning and administration techniques to successfully transfer assets to non-citizen spouses
• Identify the basic exclusion amount for deaths occurring in 2024

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of estate tax will be helpful prior to taking this course.

Advance Preparation
None