Estate planning green card holder

Posted in by Admin on August 31st, 2010

Estate planning green card holder
Green Card holders in the United States need to bear something in mind when starting their new lives in the country. They will automatically be subjected to taxes on their estates outside of the country. Getting a Green Card essentially means that the person will still be a national citizen of their home country, they will just be granted the right to live and work in the United States. This will, more than likely, mean that the person will have some holdings outside of US soil, upon which they will be responsible to pay US taxes. This could double a burden, as the person could also be responsible for taxes on their estate by their native Government as well. When Estate planning, a Green Card holder should take all financial issues into consideration. United States citizens get a $2,000,000 exemption on their estate (as do Permanent Residents). But while the Permanent Residents are entitled to the full $2,000,000 estate tax exemption when it comes to US tax, they could still be liable to pay the US Government taxes on their assets outside of the country. Any earnings of income, housing or investments could all fall under this category, which could add up to a lot of tax money being paid out. One thing when estate planning, a Green Card holder from a certain country of origin, may find some relief when they pass away. If a Green Card holder still holds assets outside of the United States at the time of their death, the next of kin could be spared from having to pay taxes to two Governments. The United States is part of a treaty signed by Canada, Australia, Japan, South Africa and a host of European countries in order to avoid this scenario. The same asset should not be taxed by two separate bodies upon the death of the party. There may be some benefits for any non-resident alien as they may get some relief if they come from a country that is part of the treaty. When it comes to estate planning, a Green Card holder should not try and avoid the issue of taxes, even though it may get a little confusing at times. There are plans which can be followed in order to get affairs properly in order for Green Card holders, and the more planning which can be done, the better things will be in the long run. Dealing with issues of taxation is just one thing that will raise its head when seeking the Green Card for access to America. The card does not make you a Citizen of the country; it merely gives you the privilege of living and working there.

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