There are many reasons why a non-U.S. citizen may need the help of a tax attorney in California .Persons who are not United States citizens, such as nonresident aliens and greencard holders, face a challenging United States estate tax planning environment when they invest in United States assets. Instead of the $3,500,000 exemption amount (applicable in 2009) to which United States citizens and permanent residents are entitled, a nonresident alien is entitled to an exemption of only $60,000 for their United States property. Permanent residents of the United States, while entitled to the entire $3,500,000 (applicable in 2009) estate tax exemption for the United States estate tax, are subject to United States estate tax on their worldwide assets, including assets held in the home country. Both nonresident aliens and greencard holders may also be subject to estate tax in their country of citizenship. However, a qualified California tax lawyer can help.

The United States has entered into tax treaties with a select number of countries – namely:

A tax relief attorney understands that these treaties, in general, allow a citizen of one of the treaty countries who owns property to avoid the possibility of both countries taxing the same asset at the time of death. As far as the United States estate tax is concerned, a treaty might reduce or eliminate such tax on the United States property of a nonresident alien.

Proper planning with the help of a tax relief attorney can greatly reduce the incidence of the United States estate tax for nonresident aliens and permanent residents, by taking advantage of certain structures and planning techniques, such as:

• Pre Immigration or Migration Planning
• Acquiring U.S. Real Estate whether outright cash purchase or debt-financing
• Offshore Trust Planning and Use Of Other Offshore Entities

The probate lawyers at the Law Offices of Jeffrey B. Kahn, P.C. have experience representing nonresident aliens and greencard holders with estate planning, particularly individuals from the “treaty” countries.

To learn more about tax planning for nonresident aliens or to contact an Orange County tax attorney, please call 866.494.6829 or send us an email.