Impact of potential estate and gift tax

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janell
Posts: 4
Joined: Fri Aug 26, 2011 12:15 pm

Impact of potential estate and gift tax

Post by janell »

In thinking about this whole tax issue, I have also read about potential estate tax, especially if your spouse is not a US citizen.

From what I understand, if you spouse is not a citizen and you (ie, the Us citizen) die, then your estate must be under 600,000, and after that Us taxes are assessed. Once you add up your house, assets, car, etc, it is pretty easy to get over 600,000. I do not know how pension survivor benefits are assessed.

Anyway, am I reading this right, and if so then everyone who is considering expatriation needs to consider the effect of potential estate taxes before deciding.

The other issue is the gift tax, sounds like out as country US citizens only have a 12,000 annual provision. Is this right? Again, these aspects really need to be factored into decisions.
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