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In a recent online edition of Private Wealth,
Beth Tractenberg and Kathryn von Matthiessen discuss the nexus between
people from a foreign nation living in the U.S. and the current Gift Tax
exemption. The authors first break down the difference between
foreigners Domiciled in the U.S. versus those that are not domiciled
here (Non-Doms). U.S. courts have a factoring system when it comes to
determining whether a person is domiciled in the U.S. If it is
determined that a foreigner is domiciled in the U.S., U.S. gift taxes
generally apply to that person. Previously, there was a $1 million cap
on the amount a person could gift during his or her lifetime. This new
reform ups that amount to a $5 million exemption for each person,
therefore giving a couple a $10 million exemption. Also, it is VERY
IMPORTANT to note that this exemption will only be in effect until the
end of 2012. There is also a real possibility that Congress could end
this extra exemption early so it is important not to wait to long if a
significant give is something you are considering as part of your Florida Estate Planning
There are three types of people this blog is meant to inform: U.S.
citizens, Domiciled foreigners, and Non-Domiciled foreigners. U.S.
citizens can take advantage of the laws of their nation. However, it is
the non-resident Domiciled and Non-Domiciled person who may not know
their wealth can be protected from U.S. taxes in that the new exemption
applies to them. If you do not know whether you are a Domiciled or
Non-Domiciled foreigner, you should contact a Jacksonville Estate Planning attorney
so they he or she can guide you to make a sound decision on keeping the
money you have worked hard to earn before the exemption end at the end
View more from the Florida Estate Planning Lawyer Blog.
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