Many individuals intending to immigrate to the United States or currently processing their U.S. immigration are aware that all residents of the United States are required to pay taxes. In today's Worldway "Immigration Life Guide" column, we will present - Answers to Common Questions about U.S. Estate and Gift Taxes, for the reference of new immigrant friends:
Q: What is the maximum exemption amount for U.S. estate and gift taxes?
A: Every U.S. resident and citizen has an estate exemption amount. If the market value of the estate does not exceed this amount, there will be no estate tax. Currently, the estate exemption amount is $5 million per person. This estate exemption amount can be fully gifted during one's lifetime, as long as it is within the exemption limit, thus avoiding gift tax. Additionally, each person can gift any individual $13,000 per year, also exempt from gift tax.
Q: What specifically is included in the "estate" in the United States?
A: Except for bank deposits in the United States, stocks, bonds, and even real estate in U.S. brokerage accounts are considered part of the estate. Foreigners have a $60,000 exemption for their estate in the United States, which may result in significant estate tax liabilities.
Q: If I want to make a lifetime gift of my "estate" in the United States, how should I proceed?
A: Foreigners also have a $13,000 annual exemption for gift tax; however, they only have a $60,000 estate exemption and cannot make lifetime gifts. Therefore, it is challenging for foreigners to gift their assets in the United States. To gift real estate in the United States to children without tax, foreigners need to establish a company, place the real estate into the company, and then gift the company shares, as shares are considered intangible assets and are not subject to gift tax.
Q: After the death of parents, how can children legally inherit their property in the United States?
A: Property must go through the probate process to be inherited by beneficiaries, unless the foreigner has established a living trust during their lifetime. In other words, if a foreigner invests in real estate in the United States under their personal name, they should have a lawyer set up a living trust to avoid the need for probate in the future.
[Immigration Tips] As a leading institution in the investment immigration industry, Worldway has been committed to selecting high-quality projects for high-end clients. The professional and attentive services provided by Worldway permeate every detail of the investor's immigration process to the United States. When clients first arrive in the United States, the Worldway customer service center will provide comprehensive assistance for settling in, including: arranging airport pick-up for the first entry; assisting with bank account opening procedures; assisting in applying for a Social Security card; assisting in hotel bookings; assisting in purchasing flight tickets to the U.S.; assisting in contacting driving schools and providing information on driver's license exams; assisting in contacting moving services; assisting in contacting real estate agents; assisting in renting or purchasing property, and other related matters.
In addition, Worldway will regularly hold various immigration-themed seminars based on client needs, including tax planning seminars for successful clients who have immigrated to the United States, professional tax consultation services provided by tax experts, and answering all tax-related questions and asset allocation issues after immigration to the United States. For more information, please call: 400-138-2929.