Estate Taxation of Nonresident Noncitizens: A Primer

6 Pages Posted: 19 Aug 2011  

Bridget J. Crawford

Pace University School of Law

Troy Lipp

Pace University - School of Law

Jonathan G. Blattmachr

Milbank, Tweed, Hadley & McCloy LLP

Date Written: August 15, 2011

Abstract

This article provides an overview of the U.S. estate tax rules that apply to nonresidents who are not U.S.citizens. The long arm of the U.S. federal estate tax extends to individuals who have assets located in the United States even if the individual is neither a resident nor a citizen of the United States. The statutory framework of subchapter B of chapter 11 of the Internal Revenue Code ode is not well understood, even by specialists. Those Code sections are not taught in most law school courses in federal estate and gift taxation. In light of the staggering staggering amount of foreign investment — $1,245.7 billion of financial assets (excluding derivatives) in 2010 — the estate tax rules governing nonresident noncitizens deserve attention.

Keywords: estate tax, nonresident, noncitizen, foreigner, gross estate, foreign, resident, citizen

JEL Classification: K34

Suggested Citation

Crawford, Bridget J. and Lipp, Troy and Blattmachr, Jonathan G., Estate Taxation of Nonresident Noncitizens: A Primer (August 15, 2011). Tax Notes, Vol. 132, p. 759, August 2011. Available at SSRN: https://ssrn.com/abstract=1904508

Bridget J. Crawford (Contact Author)

Pace University School of Law ( email )

78 North Broadway
White Plains, NY 10603
United States

Troy Lipp

Pace University - School of Law ( email )

78 North Broadway
White Plains, NY 10603
United States

Jonathan G. Blattmachr

Milbank, Tweed, Hadley & McCloy LLP ( email )

1 Chase Manhattan Plaza
New York, NY 10005
United States
212-530-5066 (Phone)

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