[WSBAPT] Non-citizen beneficiary

[John J. Sullivan]

Krista:

The noncitizen/permanent resident status of the mother means there will be no difference in terms of the estate tax impact on the client’s estate at his death (assuming she does not live in a state that has an inheritance tax). It would matter if leaving to a noncitizen spouse. 

But I have to wonder how old mom is and whether this will render her estate taxable, whether she intends to stay here and where her estate will go at her death. Client may want to leave the bequest to mom in a testamentary trust rather than outright. 

John Sullivan

Sent from my iPad

> On Jan 16, 2018, at 11:02 AM, Lewis, Amy C. <ALewis at Eisenhowerlaw.com> wrote:
> 
> If I understood the original post correctly, the mother is a U.S. resident.  If that is correct, I believe she gets the same exemption as a citizen.  The lower amount applies only to someone who is both a non-citizen and a non-resident.
>  
> Amy C. Lewis, Attorney
> <logof07d1a>
> ESTATE PLANNING & PROBATE
> 1201 Pacific Avenue, Suite 1200 | Tacoma, WA 98402
> phone 253.572.4500 | fax 253.272.5732 | www.eisenhowerlaw.com
> 
> 
> From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Carla Higginson
> Sent: Tuesday, January 16, 2018 10:53 AM
> To: WSBA Probate & Trust Listserv
> Cc: Garrett Beyer
> Subject: Re: [WSBAPT] Non-citizen beneficiary
>  
> Hi Krista,
>  
> My law partner, Garrett Beyer, is an international tax attorney and handles domestic and international business and estate planning matters.  He says that the mother's non-US citizenship makes no difference to the son's estate.  The mother's non-US citizenship could have a significant effect on her estate, depending on what country she is from.  Non-citizens only get a $60k exemption equivalent, unless that amount is increased under treaty.  Need more facts.  He's happy to have a short conversation with you on this if you would find it helpful. 
>  
> Regards,
> Carla
>  
> ___________________________
>  
> Carla J. Higginson, Attorney
> Higginson Beyer, P.S.    <image001.png>
> Friday Harbor Office:
> 175 Second Street North, Friday Harbor, Washington 98250 | Telephone: (360) 378-2185 | Facsimile: (360) 378-3935
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> carla at higginsonbeyer.com
> HigginsonBeyer.com
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> -----Original Message-----
> From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Krista MacLaren
> Sent: Monday, January 15, 2018 2:17 PM
> To: wsba probate & trust
> Subject: [WSBAPT] Non-citizen beneficiary
>  
> Hi Listmates,
>  
> I have a 45 y.o. Single client with no spouse or kids who wants to leave his substantial estate to his mother, a non-citizen permanent resident. 
>  
> Does her non-citizen status make any difference? I’m thinking not, because if his estate exceeds WA’s exemption amount it would be taxed in any case. Am I correct that this is really only a problem for married couples with more money than the federal exemption amount?
>  
> Thank you,
>  
> krista
>  
> Sent from my iPhone
>  
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