Find the right lawyer now

Nonresident Alien Estate Tax Laws

Find a Local Finance Lawyer near You

Nonresident Alien Estate Tax

Nonresident aliens who have property situated in the United States may be required to pay U.S. federal estate taxes even though they do not live in the U.S.

On What Property Does the U.S. Impose the Estate Tax?

Federal estate taxes are imposed on the transfer of property situated or deemed to be situated in the U.S at the time of the decedent's death. The tax is calculated at the same tax rate as the estate of a U.S. citizen. However, there are differences in some of the deductions and credits allowed for a nonresident alien.

Stocks issued by a U.S. corporation and U.S. federal and state government bonds are considered situated in the U.S.

Life insurance proceeds and certain bank deposits not connect to a trade or business in the U.S. are not considered situated in the U.S.

What Deductions Are Allowed for the Estate of a Nonresident Alien?

The estate of a nonresident alien is allowed the deductions for certain estate expenses, losses, and debts, the marital deduction, and the charitable deduction.

The expense and loss deduction is limited to the ratio of the portion of the estate situated in the U.S. over the entire worldwide estate.

Martial deduction is limited to the transfer of property situated in the U.S. that is passed to a spouse who is an U.S. citizen.

Charitable deduction is limited to transfer of property made to charitable organizations created and organized in the U.S.

Do I Need an Estate Planning Attorney?

Consultation with an attorney experienced in estate planning is essential to crafting an estate plan that is sensitive to both your needs and those of your loved ones. A lawyer will know which type of will or trust is right for you and will do their best to limit your tax liability.

Photo of page author Ken LaMance

, LegalMatch Law Library Managing Editor and Attorney at Law

Last Modified: 06-04-2014 12:05 PM PDT

Law Library Disclaimer
  • No fee to present your case
  • Choose from lawyers in your area
  • A 100% confidential service
What is LegalMatch?

We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.