Estate tax in the United States
The United States shall impose on the federal level on the death of a person, a tax - the federal estate tax. referred Since tax taxes the undivided estate and not the acquisition of the beneficiary, the tax in the German literature is as estate tax. The estate tax is regulated by the Internal Revenue Code.
In addition to taxation at the federal level, some U.S. states levy taxes on death. An overview of this is given below.
Personal tax liability
The global estate of the decedent is taxable in the U.S. if the testator
- U.S. - citizens ( "citizen " ) or
- Foreigners ( " aliens " ) residing in the United States ( "residence " ) was.
Otherwise, only the U.S. assets are taxed; this includes the physical assets situated in the United States (eg, land); Also it is always assumed for certain assets that it's U.S. assets, such as
- Shares in a U.S. corporation,
- In the last 3 years prior to death was revocable transfer of assets when the object was situated either at death or in the transmission in the U.S. and
- Claims against an American debtor (eg from retirement savings plan).
Allowance
The general allowance (Unified Credit ) is
- For mortality in 2011 is the Unified Credit $ 5,000,000,
- For mortality in 2012 is the Unified Credit $ 5,120,000,
- For mortality in 2013 is the Unfied Credit $ 5,250,000 and
- For mortality in 2014 is the Unfied Credit $ 5,340,000.
With limited tax liability of the tax deduction is only $ 60,000.
The exemption applies not only to the estate, but all donations are considered.
Tax exemption for the spouse
Contributions to a spouse are exempt from tax if such U.S. citizen. If the surviving spouse is not a U.S. citizen, the exemption will only be granted if a Qdot Trust is established so that the spouse can not freely dispose of the assets and untaxed from the United States can provide. When referring to Germany, the establishment of a Qdot Trust, however, can have unintended tax consequences.
Rate of taxation
For deaths in 2013, the allowance the following table shows:
Tax return
The appointed by the probate estate liquidators ( "Personal Representative" ) shall declare 706 and form 706 -NA ( Non-Resident Alien ) in 9 months after the death against the Internal Revenue Service (IRS ) tax form using the form.
Right of individual states
Estate or inheritance taxes currently levied in the following states:
The tax can be credited up to certain maximum amounts on the federal estate tax.
Avoidance of double taxation by double taxation agreements
Between Germany and the United States has a double taxation agreement in the area of estate, inheritance and gift taxes of 21 December 2001. The double taxation agreement provides for special rules for the taxation of German-American discounts.
In Article 4 of the DBA is regulated, where a person is resident for tax purposes. Had the person in both Contracting States or in neither of the Contracting States a permanent home, the domicile shall be situated in the Contracting State with which he had with which his personal and economic relations, so-called " center of vital interests ". The center of vital interests is situated in the Contracting State with which his personal and passed the clearly also still significant falling economic relations. When you move to another country, there is a special regime for 10 years. The U.S. allowance is granted pro rata basis. Otherwise, the double taxation shall be avoided by offsetting.