Transfer Taxes for the Multinational Individual

Author: Patrick McCormick

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

Individuals with international holdings and activities most often pay primary focus to income tax consequences of their cross-border activities; this approach risks enormous transfer tax consequences, particularly for nonresidents with United States holdings. Noncitizen, nondomiciled individuals directly owning United States–situated assets face massive statutory exposure to United States transfer taxes, with minimal exclusion amounts ($60,000 for estate tax purposes) and tax rates quickly reaching 40%. This course will cover the classification of individuals for transfer tax purposes and the scope of assets to which United States transfer taxes are applicable. The course will then discuss tax assessment, categories of exempt assets, and estate and gift tax treaty interplay with statutory rules.

Publication Date: April 2023

Topics Covered

• Classifying individuals for transfer tax purposes
• When transfer taxes are applicable
• Tax assessment
• Categories of exempt assets
• Estate and gift tax treaty interplay with statutory rules

Learning Objectives

• Recognize how individuals are classified for United States estate and gift tax purposes
• Identify estate and gift tax exposures for noncitizen nondomiciled individuals
• Recognize how to analyze the impact of estate and gift tax treaties on estate and gift tax exposures
• Identify United States rules for foreign trusts
• Identify functional complexities arising for United States-based taxpayers with foreign holdings

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of international taxation

Advance Preparation
None