[WSBAPT] UK Citizens w/ US Real Estate

[John J. Sullivan]

I assumed they are nonresident aliens and the real estate is in WA, in which case the estate tax only applies roughly to their US source assets. 

I would be careful about dropping the property into an LLC unless you're confident the gift will be completed before death. Generally LLC interests are personal property sourced to the domicile. You'd want to think through whether that increases any UK estate or death tax liability. 

What is this property? Second residence? Rental? Commercial? Raw land? Perhaps there are other options for removing value from their gross estates. 

John Sullivan

Sent from my iPhone

> On Nov 11, 2014, at 2:10 PM, Lewis, Amy C. <ALewis at Eisenhowerlaw.com> wrote:
> 
> You might also want to look into the estate tax treatment and any available treaties.  Remember the US estate tax exemption is only $60,000 for a non-resident alien.  Most, if not all, of the treaties provide that US gift/estate tax applies to US real property. 
>  
> I am currently representing a citizen of the Netherlands who wants to give a US residence to a family member.  We are looking into whether the client can give a cash gift (which will not be subject to US gift tax and qualifies for a temporary exemption under Dutch law) which the family member can use to purchase the residence.  In our case the Netherlands treaty does not specifically address gift tax, only estate tax, but many of the newer treaties address both.
>  
> Amy C. Lewis, Attorney
> 
> <100logoe2d333>
> ESTATE PLANNING & PROBATE
> 1200 Wells Fargo Plaza | 1201 Pacific Avenue | Tacoma, WA 98402
> phone 253.572.4500 | fax 253.272.5732 | www.eisenhowerlaw.com
> 
> 
> From: wsbapt-owner at lists.wsbarppt.com [mailto:wsbapt-owner at lists.wsbarppt.com] On Behalf Of John J. Sullivan
> Sent: Tuesday, November 11, 2014 2:01 PM
> To: wsbapt at lists.wsbarppt.com
> Cc: WSB Listserv
> Subject: Re: [WSBAPT] UK Citizens w/ US Real Estate
>  
> Felicia:
>  
> This might be a situation where one of those new TOD deeds might come in handy
>  
> Otherwise I would place it in a single purpose RLT, or a WA C
>  
> John Sullivan
> 
> Sent from my iPhone
> 
> On Nov 11, 2014, at 1:40 PM, Felicia Value, Attorney at Law <felicia at skagitprobate.com> wrote:
> 
> Hello Colleagues:
>  
> I have a question on behalf of some friends. They are UK citizens with their primary residence in the UK. They own some property in the US that they want to leave to their daughter.  Do they need a US Will to do that?  Is there some sort of ancillary proceeding that you open in the US to administer the property, even if the primary probate proceeding is in the UK?  I suppose they could add the daughter to the title as a co-owner with right of survivorship, but for exposure reasons I’m never crazy about that idea.  Should I tell them to consult US counsel,  or is this really simple and can just be dealt with easily in the administration of the UK Will?
>  
> I will forward your responses directly to my friends.  Thanks for any thoughts.
>  
> Sincerely,
>  
> Felicia Value
> Attorney at Law
> PO Box 578/116 North Third Street
> La Conner, WA 98257
> (360) 466-2088
> www.skagitprobate.com
> 
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