8 hours ago, Misty said:

In that case, the only way that makes sense is if you yourself are not a US citizen.  Is that the case?

I am a US citizen married to a non-US citizen non-resident spouse. My residence was Louisiana, and it's one of a few states that do not recognize TOD or JTWROS. Texas is another, where another daughter lives. All my assets at Fidelity Investments has to go through probate (see snippet below) and they are subject to US estate taxes if given to my wife. The unlimited marital deduction rule does not apply to non-domiciled non-US citizen spouses (see snippet below). I could leave some cash to my wife in my US bank (non-situated assets) by using a POD designation which LA does recognize, but my wife cannot enter the US and submit a death certificate in person at the bank, so that won't work. I plan to name my daugher using a POD to avoid probate, then she can send the cash to my wife tax-free each year up to the annual gift exclusion limit. I hope that clears things up.

Lifetime Gift/Estate Tax Exemption

$60,000 (estate tax exemption)

Unlike U.S. citizens who have a high lifetime exemption ($13.99 million in 2025), non-domiciled non-U.S. citizens have only a $60,000 estate tax exemption for U.S.-situated assets. There is no lifetime gift tax credit available to nonresidents to offset gift tax liability.

 

11 hours ago, JohnnyBD said:

I am a US citizen married to a non-US citizen non-resident spouse. My residence was Louisiana, and it's one of a few states that do not recognize TOD or JTWROS. Texas is another, where another daughter lives. All my assets at Fidelity Investments has to go through probate (see snippet below) and they are subject to US estate taxes if given to my wife. The unlimited marital deduction rule does not apply to non-domiciled non-US citizen spouses (see snippet below). I could leave some cash to my wife in my US bank (non-situated assets) by using a POD designation which LA does recognize, but my wife cannot enter the US and submit a death certificate in person at the bank, so that won't work. I plan to name my daugher using a POD to avoid probate, then she can send the cash to my wife tax-free each year up to the annual gift exclusion limit. I hope that clears things up.

Lifetime Gift/Estate Tax Exemption

$60,000 (estate tax exemption)

Unlike U.S. citizens who have a high lifetime exemption ($13.99 million in 2025), non-domiciled non-U.S. citizens have only a $60,000 estate tax exemption for U.S.-situated assets. There is no lifetime gift tax credit available to nonresidents to offset gift tax liability.

 

 

Okay, you say you are a US citizen, and therefore you are not a "non-domiciled non-US citizen".  So the $13.99m exemption applies.  The $60k limit is for non-citizens.

 

49 minutes ago, Misty said:

Okay, you say you are a US citizen, and therefore you are not a "non-domiciled non-US citizen".  So the $13.99m exemption applies.  The $60k limit is for non-citizens.

You still don't get it.

 

Have a reading:

https://wm.calamos.com/newsinsights/advice-and-planning-insights/estate-planning-when-a-spouse-is-a-non-us-citizen/

 

https://www.wiggin.com/publication/estate-planning-considerations-for-non-u-s-citizen-spouses/

 

When both spouses are U.S. Citizens, it is unlikely that they will be faced with a gift tax or estate tax bill. The federal estate tax exemption of $13.61 million (in 2024) for each of them and the unlimited marital deduction for a married couple enables them to pass wealth free of tax. The unlimited marital deduction rules don’t apply when one of the spouses is not a U.S. citizen.

 

What happens when the U.S. citizen spouse passes away naming the non-U.S. citizen spouse as beneficiary? The answer is, the non-U.S. citizen spouse can inherit property in the manner as a citizen. However, under federal estate tax rules, a surviving spouse who is not a U.S. citizen must pay taxes on the inherited amount. The unlimited marital deduction rule does not apply!

 

1 hour ago, Yumthai said:

You still don't get it.

 

Have a reading:

https://wm.calamos.com/newsinsights/advice-and-planning-insights/estate-planning-when-a-spouse-is-a-non-us-citizen/

 

https://www.wiggin.com/publication/estate-planning-considerations-for-non-u-s-citizen-spouses/

 

When both spouses are U.S. Citizens, it is unlikely that they will be faced with a gift tax or estate tax bill. The federal estate tax exemption of $13.61 million (in 2024) for each of them and the unlimited marital deduction for a married couple enables them to pass wealth free of tax. The unlimited marital deduction rules don’t apply when one of the spouses is not a U.S. citizen.

 

What happens when the U.S. citizen spouse passes away naming the non-U.S. citizen spouse as beneficiary? The answer is, the non-U.S. citizen spouse can inherit property in the manner as a citizen. However, under federal estate tax rules, a surviving spouse who is not a U.S. citizen must pay taxes on the inherited amount. The unlimited marital deduction rule does not apply!

 

 

I'm sorry, but I really do get it. The unlimited marital deduction is unlimited. The $13.99m (in 2025) is not the "unlimited marital deduction".  Every US citizen is entitled to a $13.99m deduction, and this can go to anyone.  No estate tax is due unless the estate is greater than $13.99m.  

 

The $60k deduction OP referred to is for a non-US citizens with US assets.   The OP says he is a US citizen, so $13.99m deduction applies, not $60k.

 

 

 

 

 

57 minutes ago, Misty said:

I'm sorry, but I really do get it. The unlimited marital deduction is unlimited. The $13.99m (in 2025) is not the "unlimited marital deduction".  Every US citizen is entitled to a $13.99m deduction, and this can go to anyone.  No estate tax is due unless the estate is greater than $13.99m.  

 

The $60k deduction OP referred to is for a non-US citizens with US assets.   The OP says he is a US citizen, so $13.99m deduction applies, not $60k.

 

My understanding, and I might be wrong, is that:

 

If the Surviving Spouse Is a Non-Citizen Non-Domiciliary  (the case here)

 

As with domiciliaries, the unlimited marital deduction will not apply when the surviving spouse is a non-citizen non-domiciliary. Unlike domiciliaries, non-domiciliaries do not receive the federal estate tax exemption. Instead, they receive only a $60,000 exemption. Any amount they receive above $60,000 from their spouse’s estate will be taxed at a rate of 40%. A QDOT may also be employed in this situation to avoid high tax rates.

 

However, you are right stating:

 

If the Surviving Spouse Is a Non-Citizen Domiciliary

 

The unlimited marital deduction will not apply when the surviving spouse is a non-citizen. Fortunately, the federal government allows U.S. domiciliaries to claim the federal estate tax exemption. This exemption allows a decedent to transfer a certain amount of money to beneficiaries free of tax. The amount of the federal estate tax exemption for 2024 is $13.61 million and adjusts each year for inflation. However, the exemption is set to drop to $5 million in 2026, so couples should regularly review and update their estate plans to keep up with changes.

Essentially, if one spouse is a non-citizen but a domiciliary, estate planning can proceed as if both spouses were citizens when the estate is valued at less than the federal estate tax exemption rate. The estate will still be protected from tax even without the advantage of the unlimited marital deduction. If the estate has a value above the federal estate tax exemption rate, the amount in excess of the exemption will be taxed. One way to avoid undesirable tax consequences is to place the excess amount in a qualified domestic trust (QDOT). QDOTs will be discussed in more detail below.

 

https://www.dlgva.com/estate-planning-with-a-non-u-s-citizen-spouse/

 

3 hours ago, Misty said:

Okay, you say you are a US citizen, and therefore you are not a "non-domiciled non-US citizen".  So the $13.99m exemption applies.  The $60k limit is for non-citizens.

My spouse is the "non-domiciled non-US citizen", and the rules apply to her after my death. My wife will only receive a $60k exemption as per the US estate tax attorney I met with in Baton Rouge, Louisiana. The federal estate tax exemption does not apply to her. I don't know what else to tell you. Below is one of many sites where you can find the pertinent information. Have a good day.

 

If the Surviving Spouse Is a Non-Citizen Non-Domiciliary

As with domiciliaries, the unlimited marital deduction will not apply when the surviving spouse is a non-citizen non-domiciliary. Unlike domiciliaries, non-domiciliaries do not receive the federal estate tax exemption. Instead, they receive only a $60,000 exemption. Any amount they receive above $60,000 from their spouse’s estate will be taxed at a rate of 40%. A QDOT may also be employed in this situation to avoid high tax rates.

Estate Planning with a Non-U.S. Citizen Spouse – Davis Law Group

21 hours ago, Yumthai said:

 

My understanding, and I might be wrong, is that:

 

If the Surviving Spouse Is a Non-Citizen Non-Domiciliary  (the case here)

 

As with domiciliaries, the unlimited marital deduction will not apply when the surviving spouse is a non-citizen non-domiciliary. Unlike domiciliaries, non-domiciliaries do not receive the federal estate tax exemption. Instead, they receive only a $60,000 exemption. Any amount they receive above $60,000 from their spouse’s estate will be taxed at a rate of 40%. A QDOT may also be employed in this situation to avoid high tax rates.

 

However, you are right stating:

 

If the Surviving Spouse Is a Non-Citizen Domiciliary

 

The unlimited marital deduction will not apply when the surviving spouse is a non-citizen. Fortunately, the federal government allows U.S. domiciliaries to claim the federal estate tax exemption. This exemption allows a decedent to transfer a certain amount of money to beneficiaries free of tax. The amount of the federal estate tax exemption for 2024 is $13.61 million and adjusts each year for inflation. However, the exemption is set to drop to $5 million in 2026, so couples should regularly review and update their estate plans to keep up with changes.

Essentially, if one spouse is a non-citizen but a domiciliary, estate planning can proceed as if both spouses were citizens when the estate is valued at less than the federal estate tax exemption rate. The estate will still be protected from tax even without the advantage of the unlimited marital deduction. If the estate has a value above the federal estate tax exemption rate, the amount in excess of the exemption will be taxed. One way to avoid undesirable tax consequences is to place the excess amount in a qualified domestic trust (QDOT). QDOTs will be discussed in more detail below.

 

https://www.dlgva.com/estate-planning-with-a-non-u-s-citizen-spouse/

 

 

Hi Yumthai, this is actually an area I've worked in for decades.  I am not a lawyer, but after years of working with a number of US estate tax lawyers I do have a general working knowledge.  It is a complicated (and always changing) area, so my only goal here is to provide some general information. People should consult directly with a lawyer as interpreting websites is leading to a lot of confusion.

 

The different links that have been provided (ex: Fidelity, Wiggins) are providing correct information. However, the interpretations that people are posting here may not be correct.  

 

What estate tax deduction applies, the status of the deceased (ie. whether they are a US citizen) is what is relevant.  If the deceased is a US citizen, the US citizen's estate receives the standard deduction for US citizens.  For 2025 this is $13.99m and Ithe new tax bill has raised this to $15m in 2026.  It doesn't matter if that US citizen is outside of the US, is married, who they are married to, whether they have a will, who or what they leave their estate to.  Their estate receives the full standard deduction.

 

This is different if the person who dies is a nondomicile/non US citizen.  So if the person who dies is a Thai citizen who is domiciled in Thailand and they have US assets, then in that case the $60k standard deduction applies.

 

The OP says he is a US citizen.  So his estate would receive the standard US deduction that all US citizens receive (currently $13.99m going to $15m next year).

 

There are additional considerations but I don't want to add to the confusion, especially as it's unlikely that many US citizens posting here have estates valued at greater than $13.99m and if they do they are definitely talking to US tax lawyers already. 

 

So again, as I started out suggesting on this thread, the best thing for people to do is consult directly with a real US estate tax lawyer. By that I don't mean read something on a website and try to interpret it, as clearly that is causing confusion. 

 

21 hours ago, JohnnyBD said:

My spouse is the "non-domiciled non-US citizen", and the rules apply to her after my death. My wife will only receive a $60k exemption as per the US estate tax attorney I met with in Baton Rouge, Louisiana. The federal estate tax exemption does not apply to her. I don't know what else to tell you. Below is one of many sites where you can find the pertinent information. Have a good day.

 

If the Surviving Spouse Is a Non-Citizen Non-Domiciliary

As with domiciliaries, the unlimited marital deduction will not apply when the surviving spouse is a non-citizen non-domiciliary. Unlike domiciliaries, non-domiciliaries do not receive the federal estate tax exemption. Instead, they receive only a $60,000 exemption. Any amount they receive above $60,000 from their spouse’s estate will be taxed at a rate of 40%. A QDOT may also be employed in this situation to avoid high tax rates.

Estate Planning with a Non-U.S. Citizen Spouse – Davis Law Group

 

Who is dying?  If it is you, after your death, your estate receives the US estate standard deduction that all US citizens receive, i.e. $13.99m in 2025.

 

Or are you saying your wife who is a non US citizen/non US domicile is the one who is dying?  In that case, her US asset estate would receive the $60k deduction if she leaves her assets to anyone who is not her US citizen husband.   

 

I am actually trying to help you, and unfortunately you're misinterpreting online information. This is a complicated area, and your best bet would be to hire a US estate lawyer directly and not try to do it yourself with online information.  Have a good day!

33 minutes ago, Misty said:

So again, as I started out suggesting on this thread, the best thing for people to do is consult directly with a real US estate tax lawyer. By that I don't mean read something on a website and try to interpret it, as clearly that is causing confusion. 

 

Hi Misty, I get your point. Better consult a proper US lawyer as information/interpretation provided by online law firms is conflicting and confusing. That's a shame precise and clear info is not to be found directly from IRS.

 

This one confirms what you say:

https://skatoff.com/florida-estate-planning-attorney/updated-for-2026-estate-and-gift-tax-chart-for-non-us-persons-greencard-holders-and-nras/

 

While this other one makes a different interpretation if the surviving spouse is a US non-citizen non-domiciliary:

https://www.dlgva.com/estate-planning-with-a-non-u-s-citizen-spouse/

 

1 hour ago, Misty said:

I am actually trying to help you, and unfortunately you're misinterpreting online information. This is a complicated area, and your best bet would be to hire a US estate lawyer directly and not try to do it yourself with online information.  Have a good day!

Thanks. I have already met with a US estate tax attorney in my home town of Baton Rouge, Louisiana, and I will follow his advice. His opinion is that when I (a US citizen) pass away, my Thai spouse (a non-US citizen, not domiciled in the US) will only receive a $60,000 exemption. He said she will not receive the federal estate tax exemption. I trust what he said is correct, and I/we have planned my estate accordingly. I printed a copy of your reply to Yumthai, and will send it to my attorney for a look. Have a good day too!

2 hours ago, Misty said:

What estate tax deduction applies, the status of the deceased (ie. whether they are a US citizen) is what is relevant.  If the deceased is a US citizen, the US citizen's estate receives the standard deduction for US citizens.  For 2025 this is $13.99m and the new tax bill has raised this to $15m in 2026.  It doesn't matter if that US citizen is outside of the US, is married, who they are married to, whether they have a will, who or what they leave their estate to.  Their estate receives the full standard deduction.

Dear Misty,

I printed a copy of your comments above and I will send them to the US tax attorney I met with for him to have a look. If what you say is correct, and he is misinterpreting the law, then that is good news for me. Cross my fingers. I appreciate you trying to help. Thanks!!!

 

You realize an opinion like this needs to be absolute, because if I leave my Thai wife for example $560,000, and the exemption is only $60,000, then that extra $500,000 will be taxed at 40%. If there's ever any doubt on taxes, I always prefer to error on the safe side. In my case, I already planned how to leave monies to my Thai wife, through my daughter, so we don't have to pay any estate taxes.

2 hours ago, Yumthai said:

 

Hi Misty, I get your point. Better consult a proper US lawyer as information/interpretation provided by online law firms is conflicting and confusing. That's a shame precise and clear info is not to be found directly from IRS.

 

This one confirms what you say:

https://skatoff.com/florida-estate-planning-attorney/updated-for-2026-estate-and-gift-tax-chart-for-non-us-persons-greencard-holders-and-nras/

 

While this other one makes a different interpretation if the surviving spouse is a US non-citizen non-domiciliary:

https://www.dlgva.com/estate-planning-with-a-non-u-s-citizen-spouse/

 

This is so confusing. The US tax attorney I met with in the US told me when I pass away, my Thai spouse (non-US citizen, not domiciled, and never set foot in the US) would only receive the $60,000 exemption. He said she would not receive the federal estate tax exemption. So, who's right and who's wrong? I don't know, but it doesn't matter to me because I will play it safe and use the $194,000 annual gift exclusion to give monies to my wife, and any monies leftover that I want to give after I'm deceased, my daughter can gift it to her.

 

Thanks for posting the skatoff site. I will keep looking in the IRS publications. The rules have to be there.

4 hours ago, Misty said:

If the deceased is a US citizen, the US citizen's estate receives the standard deduction for US citizens.  For 2025 this is $13.99m and Ithe new tax bill has raised this to $15m in 2026.  It doesn't matter if that US citizen is outside of the US, is married, who they are married to,

But it does matter to whom the estate has been left to. Whether you leave it to your non resident foreign spouse, or your favorite non resident foreign bar girl(s) -- your estate has only a $60k estate tax exemption on those monies sent abroad. So, if your Will leaves half of your $500k estate to your non resident foreign wife -- and the remainder to your non resident favorite bar girl(s) -- your estate is on the tax hook against $440k of non exempt estate assets. 

 

No advantage of beneficiary being a spouse, if she's also a non resident, non US domiciled alien. Also, no $60k exemption per each beneficiary -- $60k total for the wife and all the others you may name in your Will (if non  resident aliens). Of course, if you send only $60k abroad, and you leave the rest of your estate to your US domiciled children -- that remaining $440k is well covered in what remains of your $15m estate tax exemption. 

 

 

48 minutes ago, JimGant said:

But it does matter to whom the estate has been left to. Whether you leave it to your non resident foreign spouse, or your favorite non resident foreign bar girl(s) -- your estate has only a $60k estate tax exemption on those monies sent abroad. So, if your Will leaves half of your $500k estate to your non resident foreign wife -- and the remainder to your non resident favorite bar girl(s) -- your estate is on the tax hook against $440k of non exempt estate assets. 

 

No advantage of beneficiary being a spouse, if she's also a non resident, non US domiciled alien. Also, no $60k exemption per each beneficiary -- $60k total for the wife and all the others you may name in your Will (if non  resident aliens). Of course, if you send only $60k abroad, and you leave the rest of your estate to your US domiciled children -- that remaining $440k is well covered in what remains of your $15m estate tax exemption. 

 

 

Can you imagine taking someone's word on it (even an attorney), and then you leave your non-US citizen spouse (who's never set foot in the US) for example; $560k, then afterwards she finds out the exemption was only $60k, and she loses $200k in estate taxes. You can't rewind that decision.

47 minutes ago, JimGant said:

But it does matter to whom the estate has been left to. Whether you leave it to your non resident foreign spouse, or your favorite non resident foreign bar girl(s) -- your estate has only a $60k estate tax exemption on those monies sent abroad. So, if your Will leaves half of your $500k estate to your non resident foreign wife -- and the remainder to your non resident favorite bar girl(s) -- your estate is on the tax hook against $440k of non exempt estate assets. 

 

No advantage of beneficiary being a spouse, if she's also a non resident, non US domiciled alien. Also, no $60k exemption per each beneficiary -- $60k total for the wife and all the others you may name in your Will (if non  resident aliens). Of course, if you send only $60k abroad, and you leave the rest of your estate to your US domiciled children -- that remaining $440k is well covered in what remains of your $15m estate tax exemption. 

Do you mean that, in case of non-resident non-us citizen heir, federal estate tax exemption will only apply if estate is kept in the US and therefore only $60k can be transferred abroad tax-free? Mind you share any link/reference?

 

 

47 minutes ago, Yumthai said:

Do you mean that, in case of non-resident non-us citizen heir, federal estate tax exemption will only apply if estate is kept in the US and therefore only $60k can be transferred abroad tax-free? 

 

That's the way I am interpreting it. Especially, since my US tax attorney told me my wife only has a $60k exemption because she's not domiciled in the US. Maybe that's why all the tax firms state the following:

 

The federal government does not want someone who isn’t a citizen to inherit assets and pay no estate tax for fear that those assets would leave the country untaxed.

18 hours ago, JohnnyBD said:

The federal government does not want someone who isn’t a citizen to inherit assets and pay no estate tax for fear that those assets would leave the country untaxed.

That would great to find the written rule backing up this lawyer comment.

On 11/15/2025 at 8:10 AM, Misty said:

What estate tax deduction applies, the status of the deceased (ie. whether they are a US citizen) is what is relevant.  If the deceased is a US citizen, the US citizen's estate receives the standard deduction for US citizens.  For 2025 this is $13.99m and Ithe new tax bill has raised this to $15m in 2026.  It doesn't matter if that US citizen is outside of the US, is married, who they are married to, whether they have a will, who or what they leave their estate to. Their estate receives the full standard deduction.

Misty, you may be correct. I searched about 30 different law firm sites online and many state it's a $60k exemption for surviving non-citizen spouses, but they also use generalized terms rather than qualifying their opinions. Maybe it's just a marketing ploy. I found a few law firms that state a US citizen may leave his estate to a non-citizen spouse or to any non-citizen tax-free up to the federal estate tax exemption limit. (see below). I have also found the U.S. Tax Codes on this topic, and will review them to see if I can find the actual law. This topic has really piqued my interest.

Thanks again for trying to help!

 

Estate Planning for Non-Citizens - Jessica Wilson Law Office

https://jessicawilsonlaw.com/estate-planning-for-non-citizens/#:~:text=Key Scenarios,estate tax free

If the Decedent is a U.S. Citizen (or Green card Holder) and the Spouse is a Non-Citizen: If the decedent was a US citizen then assets not exceeding the federal estate tax exemption ($13.61 million for 2024) can pass to anyone, including a non-citizen spouse, estate tax free. Therefore a QDOT is necessary only if assets exceed the (very high) federal exemption.

 

The other two sites:

https://www.btrustlaw.com/blog/can-i-leave-property-to-a-non-citizen/

https://skatoff.com/florida-estate-planning-attorney/updated-for-2026-estate-and-gift-tax-chart-for-non-us-persons-greencard-holders-and-nras/

1 hour ago, JohnnyBD said:

Misty, you may be correct.

Yes, I'm sure you are. My apologies, and I stand corrected.

 

That $60k exemption is not for US assets being left to a non resident alien; it's for US situs assets in the estate of a non resident alien (being left to anyone in the world, as nationality of beneficiary not applicable). 

 

On 11/15/2025 at 12:26 PM, JohnnyBD said:

The US tax attorney I met with in the US told me when I pass away, my Thai spouse (non-US citizen, not domiciled, and never set foot in the US) would only receive the $60,000 exemption. He said she would not receive the federal estate tax exemption.

 Best get a new tax attorney. Your estate has a $15m exemption, whether you leave it to your wife, or to anyone else. 

 

Yumthai, my apologies for all the head scratching I caused.....

4 hours ago, JimGant said:

6 hours ago, JohnnyBD said:

Misty, you may be correct.

Yes, I'm sure you are. My apologies, and I stand corrected.

 

That $60k exemption is not for US assets being left to a non resident alien; it's for US situs assets in the estate of a non resident alien (being left to anyone in the world, as nationality of beneficiary not applicable). 

Jim, I was trying to be polite to Misty. I didn't say she was correct, only that she may be. She didn't provide any links or proof to support her opinion. At least I met with a US tax attorney and posted what he told me. I also provided several links from law firms supporting what he told me. And in fairness, I spent time to provide a few links from law firms that support what Misty had posted. It doesn't matter to me which position is correct, because it doesn't affect my plans. I just find it interesting and would like to know the truth. The US Tax Code is the final authority, and below is what I found so far. If you find anything definitive (fact), please post. Have a good day!

 

§ 20.2056A-1 Restrictions on allowance of marital deduction if surviving spouse is not a United States citizen.

(a) General rule. Subject to the special rules provided in section 7815(d)(14) of the Omnibus Budget Reconciliation Act of 1989 (Pub. L. 101-239; 103 Stat. 2106), in the case of a decedent dying after November 10, 1988, the federal estate tax marital deduction is not allowed for property passing to or for the benefit of a surviving spouse who is not a United States citizen at the date of the decedent's death (whether or not the surviving spouse is a resident of the United States) unless—

(1) The property passes from the decedent to (or pursuant to)—

(i) A qualified domestic trust (QDOT) described in section 2056A and § 20.2056A-2;

(ii) A trust that, although not meeting all of the requirements for a QDOT, is reformed after the decedent's death to meet the requirements of a QDOT (see § 20.2056A-4(a));

(iii) The surviving spouse not in trust (e.g., by outright bequest or devise, by operation of law, or pursuant to the terms of an annuity or other similar plan or arrangement) and, prior to the date that the estate tax return is filed and on or before the last date prescribed by law that the QDOT election may be made (no more than one year after the time prescribed by law, including extensions, for filing the return), the surviving spouse either actually transfers the property to a QDOT or irrevocably assigns the property to a QDOT (see § 20.2056A-4(b)); or

(iv) A plan or other arrangement that would have qualified for the marital deduction but for section 2056(d)(1)(A), and whose payments are not assignable or transferable to a QDOT, if the requirements of § 20.2056A-4(c) are met; and

(2) The executor makes a timely QDOT election under § 20.2056A-3.

On 11/15/2025 at 8:19 AM, Misty said:

Who is dying?  If it is you, after your death, your estate receives the US estate standard deduction that all US citizens receive, i.e. $13.99m in 2025.

Here's where Misty nails it. Who cares that having a non US, non domiciled wife means restrictions on the "marriage deduction," and which brings in workarounds like a QDOT applicable to the marriage deduction. You don't NEED the marriage deduction -- isn't the standard deduction of $15m (2026) enough for you?

 

This is just pure and simple -- every US citizen's estate, consisting of US assets, can be left to anyone in the world you would like (well, maybe not a North Korean). And the standard deduction, beginning in 2026, is 15Million. Meaning, no one I've ever known needs the marriage deduction -- I I'm sure this includes you.

 

So, advise you hire a new tax lawyer.

 

Actually, this gets simpler, the more you digest the Google researches. 

44 minutes ago, JimGant said:

Here's where Misty nails it. Who cares that having a non US, non domiciled wife means restrictions on the "marriage deduction," and which brings in workarounds like a QDOT applicable to the marriage deduction. You don't NEED the marriage deduction -- isn't the standard deduction of $15m (2026) enough for you?

 

This is just pure and simple -- every US citizen's estate, consisting of US assets, can be left to anyone in the world you would like (well, maybe not a North Korean). And the standard deduction, beginning in 2026, is 15Million. Meaning, no one I've ever known needs the marriage deduction -- I I'm sure this includes you.

 

So, advise you hire a new tax lawyer.

 

Actually, this gets simpler, the more you digest the Google researches. 

Misty may very well be right. Yes, it makes sense to me also, but it would be nice if she could post some links to the US estate tax laws on the exclusions for non-citizen beneficiaries since there's so many law firms saying the opposite. Certainly, there's something written in the tax laws that spells out the amounts, or states it's for everyone, citizen, non-citizen, etc.

 

I don't have a tax lawyer. I only met with one after Fidelity Investments sent me a notice that all my assets with them had to go through probate in Louisiana. I made other arrangements to get money to my Thai wife using the tax-free annual gift exclusions.

Not sure where to move this USA specific thread. 

19 minutes ago, DrJack54 said:

Not sure where to move this USA specific thread. 

Why move it? It's already in the US specific area....

The US estate tax topic has been a good discussion for me. I learned a lot through all the online searches and in discussion. Now that I know I can leave my Thai wife more than the $60,000 tax exemption, I can stop transferring money to Thailand each year just to let it sit in a Thai bank earning very little. I can now name my wife as beneficiary on my high-yield bank savings and leave the money for her in the US. Thanks to Misty & others in the discussion, and a big👎down to the tax attorney in the US. ☺️ 

This is why there's so much confusion regarding a US citizen passing their assets to a non-citizen spouse. I researched more than 30 law firms and the majority of them are putting out this type of conflicting (I hope wrong) information. My non-citizen spouse is not a resident.

 

The Elder & Disability Law Firm, APC March 21, 2023

If your spouse is a non-citizen, does this change the estate planning process? When it comes to taxes, a non-citizen spouse who inherits your estate will be free of estate taxes so long as the estate doesn’t exceed the statutory limit of $12.92 million dollars. The non-citizen spouse need only show that they are a resident.   

https://www.california-elder-law.com/blog/estate-planning-with-a-non-citizen-spouse/

4 hours ago, JohnnyBD said:

I researched more than 30 law firms and the majority of them are putting out this type of conflicting (I hope wrong) information. My non-citizen spouse is not a resident.

 

The Elder & Disability Law Firm, APC March 21, 2023

If your spouse is a non-citizen, does this change the estate planning process? When it comes to taxes, a non-citizen spouse who inherits your estate will be free of estate taxes so long as the estate doesn’t exceed the statutory limit of $12.92 million dollars. The non-citizen spouse need only show that they are a resident.   

This is weird. Did the majority of the  30 law firms you perused really say the non citizen wife needed to be a US resident to get the $15M estate tax exemption? This, of course, would mean that all non citizen beneficiaries of your estate -- not just your wife -- would need to be residents -- or be limited to the $60M exemption. 

 

Not sure how you arrive at the correct answer.... I looked thru the Internal Revenue Code and instructions for Form 706 (Estate Tax Return) -- and struck out.

 

Misty?

I'm not sure how one arrives at the correct answer either. Here are a few more sites. Reading all these different opinions makes me uneasy about leaving a lot of money in the US for my spouse. One needs to be absolutely sure on this decision because there's no do-overs.

 

Who Needs a QDOT? Understanding Trusts for Non-Citizen Spouses - Leigh Hilton

https://dentonestateplanninglawyer.com/who-needs-a-qdot-understanding-trusts-for-non-citizen-spouses/#:~:text=The Challenge for Non-Citizen Spouses&text=In many cases%2C those estate,tax return (Form 706).

The Challenge for Non-Citizen Spouses

The 2025 annual exclusion for gifts to non-citizen spouses is $190,000. Simply put, this means that if you pass away and leave more assets than the exclusion to your non-citizen spouse, those assets beyond the exclusion could be subject to estate taxes. In many cases, those estate taxes could reach 40% unless proper planning is in place.

 

https://www.dlgva.com/estate-planning-with-a-non-u-s-citizen-spouse/

If the Surviving Spouse Is a Non-Citizen Non-Domiciliary

Unlike domiciliaries, non-domiciliaries do not receive the federal estate tax exemption. Instead, they receive only a $60,000 exemption. Any amount they receive above $60,000 from their spouse’s estate will be taxed at a rate of 40%. A QDOT may also be employed in this situation to avoid high tax rates.

I asked Gemini (Google's AI) this question:  when a us citizen married to a non-citizen dies how is estate tax calculated

 

The unlimited marital deduction generally does not apply 

• Unlimited marital deduction: Transfers of assets from a deceased U.S. citizen to a surviving U.S. citizen spouse are exempt from federal estate tax, regardless of the value.
• Non-citizen spouse: This unlimited deduction does not apply when the surviving spouse is a non-citizen. The federal government denies this deduction to prevent assets from leaving the country tax-free. 

 

How the estate is calculated:

 

If the unlimited marital deduction is not used, the U.S. citizen's estate is calculated as follows:

• Gross estate: This includes the value of all of the decedent's assets, potentially including non-probate property.
• Special rules for joint property: If the couple owned property jointly, it is not automatically assumed to be 50/50. Instead, the full value of the jointly-held property may be included in the U.S. citizen's estate unless the non-citizen spouse can prove their own financial contribution to its purchase.
• Unified credit: The estate can use the decedent's lifetime estate tax exclusion ($13.99 million in 2025) to offset the value of the estate.
• Taxable estate: The remaining value of the gross estate, after deductions and exclusions, is the taxable portion subject to estate tax. 

 

The references Gemini gives as source material does include the Instructions for Form 706 AND this webpage:

 

https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-estate-taxes#:~:text=Am I required to file,tax returns to learn more.