Estate Planning for Resident and Nonresident Aliens

With increasing high net worth clients acquiring citizenship or permanent residency in multiple countries, counsel and tax advisers should recognize estate planning issues. Counsel's initial inquiry establishes whether a new client is a U.S. income tax resident and a U.S. domiciliary.

Spouses and children may have different citizenships and residency statuses, which will also impact the estate plan. Many nonresident aliens have children/grandchildren who are U.S. income tax residents. There may be significant transfer tax advantages of gifts and bequests from nonresident aliens to U.S. persons.

Estate planning attorneys and tax advisers must also identify tax opportunities and risks for clients, understand the reporting issues that apply to the U.S. recipients of gifts, and anticipate problems that arise when non-U.S. individuals acquire or transfer U.S. assets.

Listen as our panel of estate planning attorneys experienced in international issues discusses the estate, gift, and generation-skipping transfer tax rules for resident and nonresident aliens. The panel will also outline basic planning scenarios and key potential trouble spots and opportunities.

1. Estate, gift, and generation-skipping transfer tax rules
   1. U.S. residents
   2. Non-U.S. residents
   3. Effect of bilateral estate and gift tax treaties
2. Sample estate planning scenarios
   1. U.S. legal permanent resident married to U.S. citizen
   2. Both spouses are U.S. legal permanent residents
   3. Nonresident alien married to U.S. citizen
   4. Nonresident alien with U.S. assets
3. Potential trouble spots
   1. Choosing executors/trustees
   2. Children with different citizenships
   3. Covered expatriates
4. Potential opportunities
   1. Gifts/bequests by nonresident aliens
   2. Dynasty trusts
   3. Reporting issues for U.S. recipients

The panel will review these and other key issues:

• What estate, gift, and generation-skipping transfer tax rules apply to resident and nonresident aliens?
• What gift and bequest opportunities are available for transfer by nonresident aliens to U.S. persons?
• What are the reporting issues for counsel when U.S. taxpayer clients are recipients of gifts and bequests from nonresident aliens?

Learning Objectives

After completing this course, you will be able to:

• Recognize key challenges of estate, gift, and generation-skipping transfer tax rules
• Ascertain when treaty provisions may trump income and transfer tax rules
• Determine when income may be effectively connected with the U.S.
• Decide appropriate holding structures for U.S. assets

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).