Call Now (800) 681-1295
Close

Taxes on gifts and bequests to Americans from expatriates

Table of Contents

    Gifts and bequests to U.S. persons from covered expatriates are taxed at the highest marginal estate or gift tax rate applicable at the time of the bequest or gift. However, the tax so imposed is reduced by the amount of any foreign estate or gift tax paid on the bequest or gift. Additionally, the gift tax annual exclusion applies, as do the rules for charitable donations and spousal transfers under the general estate and gift tax rules, and only those assets not included on a U.S. federal estate or gift tax return will be assessed the transfer tax.

    Special rules apply for transfers in trust. If a gift or bequest is made from a domestic trust, the tax applies as if the trust was a U.S. citizen and the trust is required to pay the tax. Conversely, if a gift or bequest is made from a foreign trust, the tax applies to any distribution from the trust to a U.S. citizen or resident beneficiary and he or she is responsible for paying the tax. For income tax purposes, the beneficiary may deduct the amount of this tax to the extent that it was imposed on an amount also included in his or her gross income. A foreign trust may make an election to be treated as a domestic trust solely for purposes of these rules, but this election is generally irrevocable.

    BBB Rating

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    tax lawyers

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    California
    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    Arizona
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    Texas
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    Nevada
    (702) 997-6465
    Florida
    (786) 999-8406
    Utah
    (385) 501-5934