The federal transfer taxes can be applied on transfers to anyone other than your spouse. As long as you are married to a citizen of the United States, you can use the unlimited marital deduction to transfer unlimited assets tax-free. A person who is married to a citizen of another country cannot use the exclusion because the surviving spouse could return to his or her home country with a tax-free inheritance. The IRS would never be able to collect the death tax.
Topics covered in this report include:
- Marital Transfer Tax Deduction
- Qualified Domestic Trusts