[WSBAPT] Non citizen spouse - Washington Estate Tax

[John J. Sullivan]

Nestor:

The QDOT provisions of the federal and WA taxes are statutory and not dependent on either being a citizen of a treaty nation.  

Don’t forget you only need a QDOT for the excess over the lifetime exemption of $11+ million for federal and $2.129 million for WA. 

Also, consider whether survivor will return to country of origin, or move to another state, in which case it may make sense to pay a little tax on the first estate to avoid the restrictions of the QDOT and allow the noncitizen survivor to eliminate U.S. estate taxation by moving assets offshore. 

John J. Sullivan

Sent from my iPad

> On Sep 12, 2018, at 3:13 PM, <nestor at pplsweb.com> <nestor at pplsweb.com> wrote:
> 
> I always thought that unless the couple are citizens of a treaty nation, can’t use a QDOT trust when both are non-citizens.
>  
> My question is that I have a young couple both nonresidents/ citizens from non-treaty nation that bought a house for cash close to one million dollars. What is the best way to get past the $60K exemption for each in the event of death?
>  
>  
> Nestor Gorfinkel, Attorney at Law
> Licensed in Washington & Florida
> Florida Civil-Law (International) Notary
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> From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of James Bates
> Sent: Monday, September 10, 2018 11:18 AM
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> Subject: [WSBAPT] Non citizen spouse - Washington Estate Tax
>  
> My client’s spouse passed away leaving no will.  Total estate…all community…was in the $5 to 8 million range.  Neither client, nor spouse were citizens.  It appears that Washington will not allow a marital deduction as survivor isn’t a citizen.  However, it also appears under WAC 458-57-115(2)c(iv)(B) that a QDOT election can be done post death prior to the due date on the estate tax return.  Has anyone taken advantage of this section and have any input or a few minutes to educate me on how to proceed?
>  
> Thank you.
>  
> James Bates, Attorney
> Luce & Associates, P.S.
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