[WSBAPT] German citizen-US legal permanent resident

[Roger Hawkes]

Thanks;my understanding so far is that citizenship and residency only impact taxes, not dpoa or hcpoa; is that correct?

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Margaret Delp
Sent: Thursday, March 30, 2023 2:41 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] German citizen-US legal permanent resident

Thank you for the information and excellent article, Laura. Yes, given the small size of the estate, we are not concerned that the spousal deduction in unavailable.

A non-citizen permanent resident can serve as Personal Representative and as agent under DPOAs, correct?

Thanks much!
Margaret

From: <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> on behalf of Laura Latta <laura at lauralatta.com<mailto:laura at lauralatta.com>>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Date: Thursday, March 30, 2023 at 12:42 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] German citizen-US legal permanent resident

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 Latta
Law Office of Laura Latta PLLC
she/her

Phone (206) 841-2344
www.LauraLatta.com<http://www.LauraLatta.com>

4010 Lake Washington Blvd. NE Ste. 202

Kirkland, WA 98033

NOTICE:  This communication may contain privileged or other confidential information. If you have received it in error, please advise the sender by replying to this email and immediately delete the message and any attachments without copying it or disclosing its contents to others.


On Wed, Mar 29, 2023 at 11:46 AM Margaret Delp <delp at whidbey.net<mailto: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<http://www.delp-law.com>


***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
_______________________________________________
WSBAPT mailing list
WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com>
http://mailman.fsr.com/mailman/listinfo/wsbapt
***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.*** _______________________________________________ WSBAPT mailing list WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com> http://mailman.fsr.com/mailman/listinfo/wsbapt
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20230330/ff542b88/attachment.html>