Menu ${}${SEMFirmNameAlt}${}${SEMFirmNameAlt}
Practice Areas
Let's Get Started!

Non-resident aliens with real estate need effective estate plan

The U.S. housing market is finally on the upswing, and one contributing factor could be the uptick in international buyers who are purchasing property in America.

The National Association of Realtors recently reported that real estate sales to international clients increased from $68.2 billion in 2013 to $92.2 billion in 2014, and almost half of those sales involved non-resident aliens.

As LifeHealthPro recently reported, there are several reasons why international clients are deciding to purchase real estate in the U.S., including the country's stable political and economic environment and the fact that the U.S. allows non-citizens to hold title and own property.

But there are also some potential problems that a non-resident alien (someone who has primary residency in another country and does not have a green card) buying real estate can run into, the article explained, namely: estate tax liabilities.

For example, the current estate tax exemption is currently $5.43 million for both U.S. citizens and green-card holders. But the estate tax exemption for a non-resident foreign alien is a mere $60,000, which results in a tax credit of $13,000 on a property that could be worth millions.

Additionally, the unlimited marital deduction does not apply to property owned by a non-resident foreign alien, even if the surviving spouse is a U.S. citizen or green card holder.

The good news is that these tax liabilities can often be avoided with the help of an estate planning lawyer.

One potential way to fix the problem is by purchasing a life insurance policy to cover the possible estate tax liability since it would not be considered part of the non-resident alien's U.S. assets.  

For more information, talk to an estate planning attorney in your state.

No Comments

Leave a comment
Comment Information

Serving businesses and individuals throughout Massachusetts

Braintree Office
25 Braintree Hill Office Park
Suite 406
Braintree, MA 02184

Toll Free: 888-759-5109
Fax: 617-523-5653
Braintree Law Office Map

Cranston Office
200 Midway Road
Suite 159
Cranston, RI 02920

Toll Free: 888-759-5109
Cranston Law Office Map

Hyannis Office
1330 Phinney’s Lane
Hyannis, MA 02601

Toll Free: 888-759-5109
Hyannis Law Office Map

Norwood Office
520 Providence Highway
Suite 10
Norwood, MA 02062

Toll Free: 888-759-5109
Norwood Law Office Map

Waltham Office
375 Totten Pond Road
Suite 200
Waltham, MA 02451

Toll Free: 888-759-5109
Waltham Law Office Map

Westborough Office
276 Turnpike Road
Suite 228
Westborough, MA 01581

Toll Free: 888-759-5109
Westborough Law Office Map

Woburn Office
444 Washington Street
Suite 203
Woburn, MA 01801

Toll Free: 888-759-5109
Woburn Law Office Map

Longmeadow Office
Williams Place
813 Williams Street
Longmeadow, MA 01106

Toll Free: 888-759-5109
Map & Directions