[WSBAPT] German citizen-US legal permanent resident

[Laura Latta]

The major issue facing married couples where either spouse is not a U.S.
citizen is that the spousal deduction is not available without the use of a
qualified domestic trust. If the estate passing from the citizen spouse to
the non-citizen spouse is below the individual exemption amount this is
usually not a problem. Note that permanent residents can still claim the
standard individual exemption, but non-resident aliens are subject to a
lower individual exemption amount.

I never advise non-citizen clients on the tax implications in their country
of citizenship and instead recommend consulting an attorney/tax advisor
there as part of the planning process.

I have attached an article which I found useful for getting a base
understanding of the tax issues for non-citizen couples. It's a few years
old and so should be checked for updates to the specific statutes cited,
but the overall discussion of the issues at play is useful.


*Laura LattaLaw Office of Laura Latta PLLC*

she/her

Phone (206) 841-2344

www.LauraLatta.com

4010 Lake Washington Blvd. NE Ste. 202

Kirkland, WA 98033



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On Wed, Mar 29, 2023 at 11:46 AM Margaret Delp <delp at whidbey.net> wrote:

> Hello everyone: I am working on an estate plan for a couple in which the
> wife is a German citizen and a US legal permanent resident and who has
> lived in the US for over 20 years. Their small estate is entirely community
> property and comprised of approximately $280,000.00 in financial assets.
>
>
>
> My questions center on whether the wife’s German citizenship/legal
> permanent resident status has any implications in estate planning:
>
>
>
> First, can a US legal permanent resident serve as Personal Representative?
> RCW 11.36.010 disqualifies minors, people of unsound mind, and people with
> felony convictions, and does not appear to require US citizenship. In this
> case, we can avoid probate altogether as between spouses through
> beneficiary designations and JTROS titling on financial accounts, but I am
> still wondering for the purpose of drafting their very simple wills.
>
>
>
> Second, are there any German tax implications for the wife when she
> inherits from her spouse? My understanding from a google search is that
> Germany will not tax the wife’s inheritance if she is not German tax
> resident.  Does anyone have any expertise in this area?
>
>
>
> Third, is there any problem with the wife serving as agent for the husband
> under his durable power of attorney for financial and property decision
> making?
>
>
>
> Thank you!
>
> Margaret
>
>
>
> --
>
> Law Office of Margaret Delp
>
> Mailing Address: PO Box 292, Langley, WA 98260
>
> Physical location: 2815 Howard Rd., Langley, WA, Second Floor
>
> Phone: 360-579-4530
>
> Fax: 360-512-3114
>
> www.delp-law.com
>
>
>
>
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