Wednesday, March 9, 2011

Can I Create A Joint Trust If My Spouse Is Not a US Citizen?

Special tax rules apply when one of the spouses is not a U.S. citizen. Thus special precautions may be necessary to ensure that the Trust property will qualify for the federal estate tax marital deduction at death of the citizen spouse. Federal tax law currently requires that property given to a noncitizen spouse be in a trust having a U.S. citizen (or U.S. corporation) as a trustee in order for the property to qualify for the federal estate tax marital deduction. Basically, this requirement is so that the I.R.S. can collect, from either the trust or the trustee who is a citizen, the estate taxes due on the trust when your noncitizen spouse dies. We The People Joint A/B and A/B/C Trust forms are not esigned for a couple where at least one of the spouses is a non-US citizen. You will need to consult with an attorney. We The People can assist you with a Joint A Trust when one of the spouses is a non-US citizen if you independently determine that you are not concerned with any estate tax ramifications.

Call Tammy or Rene of By The People, Fairfield at 707-428-9871 with any questions, or if you need more information about all the over 80 documents we can assist you with.

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