A QDOT.

The estate tax exemptions are pretty large for US citizens, so I wouldn't worry
about the estate tax on Nana's nest egg -- if you become a USC. Really, estate
tax is always tax on money that was already taxed. So are capital gains taxes
for that matter.

I just don't see the downside of someone married to a USC also becoming USC and
I see many pifalls if one doesn't. Particularly if one has USC children.


--- In canada_twincities@yahoogroups.com, "Cathy" <sparksals@...> wrote:
>
> I have been fighting the USC thing since I became eligible. A friend of mine
planted a seed that because of my husband's job and the frequency of our moves,
I should target employment with the federal govt so that I can transfer somewhat
easily whenever we move.
>
> I knew about this rule with estate taxation, but put it in the back of my
mind. There just seems to be more and more valid reasons to become one.
>
> This may be a further complicated question and I know the partial answer, but
regarding large inheritance from Canada, say over $250K. I know it must be
reported to the IRS, but is not taxable upon entry, but growth is. What bothers
me is it will have already been taxed in Canada and once here, I presume it will
eventually be taxable in our estates - a form of double taxation. I have been
careful that any funds from Canada remain in my name only so that should
something happen to my husband, it doesn't get taxed until I go.
>
> I had my financial planner in Tucson look into trusts, but apparently, what
are great havens for estate taxes, are extremely limited when enacted by a
non-USC. I can't remember the name of the trust, but it starts with a Q. You
know what it is, Nelson?
>
>
>
> ----- Original Message -----
> From: nelsonagn
> To: canada_twincities@yahoogroups.com
> Sent: Wednesday, September 30, 2009 5:41 AM
> Subject: Re: [C2T] Our green card story and a question - do you carry your
green card with you?
>
>
> No, the USC spouse is entitled to the unlimited benefit.
>
> The principle is that, for estate tax purposes, a USC will always be on the
hook, so if his foreign spouse dies first, while everything comes to him estate
tax free, he will eventually die, and pay both their share of estate tax.
>
> On the other hand, if a USC dies before his foreign spouse, the widow, not
being a citizen, could manage to avoid estate tax by relinquishing her GC, and
estate tax would be lost, so a non-USC spouse does not get the estate fully
tax-free.
>
> Note that the exemptions are still pretty high for the non-USC spouse, so
its not something to keep you awake nights. But if the estate is getting up into
the 2-3 million range (including his life insurance, btw), it might be a good
idea to get citizenship.
>
> Note also that recent expatriation rules also make it harder for a GC holder
with large net worth to avoid taxation by simply giving up GC.
>
> So a non-USC spouse could see herself paying estate tax when DH (that's Dead
Husband) kicks off, as well as not being able to avoid it when she dies -- even
if she's left the country
>
>
> --- In canada_twincities@yahoogroups.com, "Cathy" <sparksals@> wrote:
> >
> > Is it true that if the USC survives the non-USC spouse, that they are not
entitled to the unlimited surviving spouse tax benefit either?
> >
> >
> > ----- Original Message -----
> > From: nelsonagn
> > To: canada_twincities@yahoogroups.com
> > Sent: Tuesday, September 29, 2009 2:32 PM
> > Subject: Re: [C2T] Our green card story and a question - do you carry
your green card with you?
> >
> >
> > Exactly. I'm glad you found out about that lovely provision in time.
> >
> >
> >
> >
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