Estate Tax Relief for Foreign Nationals
If you have considerable U.S. assets, they could be drastically reduced at your death unless you have a solid plan. Fortunately, foreign nationals have the right to purchase a U.S. life insurance policy, which will provide the cash needed to pay tax liabilities when you're gone.
And, if you are a foreign national married to a U.S. citizen, you do not automatically benefit from the unlimited marital deduction. Therefore, you could be subject to a greatly reduced estate because of tax liabilities.
U.S. life insurance policies are income, gift and estate tax free, and paid in U.S. dollars.
Life insurance creates instant liquidity, and when placed in a U.S. based trust, it is protected from further taxation. Even if you are a non-resident foreign national, you can purchase a life insurance policy that will pay any future estate tax due.
You may utilize annual gifts as a tax-free method to buy life insurance for your partner. The eventual proceeds will be U.S. income and estate tax-free.