[WSBARP] Taking non resident alien spouse off title of real estate - tax issues

[John J. Sullivan]

If NRA wife gifts now to citizen husband, the unlimited marital deduction applies. 

I would specify it’s to create separate property and claim that REET exemption so if she dies her estate has no CP interest in US source property. 

John J. Sullivan

Sent from my iPhone

> On Jan 12, 2021, at 3:42 PM, Lisa Chiang <feesimple7 at gmail.com> wrote:
> 
> 
> Hi all,
> 
> A silly question, as it's been awhile since I've dealt with this scenario, so want to be sure:
> 
> Client is U.S. citizen.  Wife used to hold a green card, which she gave up after they moved overseas a decade ago.  IRS deems her to be a non resident alien (NRA) for tax purposes.  Kids are also U.S. citizens (all minors currently).  
> 
> Real estate in WA state acquired as community property when they both lived and worked here.  
> 
> Client would like to take his wife off title of WA house (she's agreeable).  
> 
> Wondering about gift tax issues before we proceed.  (Will prepare QDOT for other liquid assets). Any thoughts or wisdom from the group is greatly appreciated.  
> 
> Kind regards, 
> Lisa
> 
> 
> -- 
> 
> Estate planning and settlement, trusts, real estate and probate
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