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  • tax consequences for people who have a green card and pass away

    Hi there,

    I'm trying to understand the tax consequences for the following circumstances:

    if a person only has a green card - and no will and dies - my understanding is - everything they own goes to the US government.

    What happens if the person with the green card has a will. My understanding is than 40% goes to the American Governement.

    How does it change - if the person with the green card gets married to an american citizen and there is still no will and most of her assets are still her separate estate.

    What happens if she is married - still only has the green card but now has a will. What happens to her separate estate.

    If anybody can help me with some answers for this - that would be great.

    this is for the state of Washington

  • #2
    Hi there,

    I'm trying to understand the tax consequences for the following circumstances:

    if a person only has a green card - and no will and dies - my understanding is - everything they own goes to the US government.

    What happens if the person with the green card has a will. My understanding is than 40% goes to the American Governement.

    How does it change - if the person with the green card gets married to an american citizen and there is still no will and most of her assets are still her separate estate.

    What happens if she is married - still only has the green card but now has a will. What happens to her separate estate.

    If anybody can help me with some answers for this - that would be great.

    this is for the state of Washington

    Comment


    • #3
      <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Alice Bossart:
      Hi there,

      I'm trying to understand the tax consequences for the following circumstances:

      if a person only has a green card - and no will and dies - my understanding is - everything they own goes to the US government.

      What happens if the person with the green card has a will. My understanding is than 40% goes to the American Governement.

      How does it change - if the person with the green card gets married to an american citizen and there is still no will and most of her assets are still her separate estate.

      What happens if she is married - still only has the green card but now has a will. What happens to her separate estate.

      If anybody can help me with some answers for this - that would be great.

      this is for the state of Washington </div></BLOCKQUOTE>
      Hello Alice and welcome to the forum

      Davdah is correct that Washington is a community property state, howeever, Davhad is incorrect on what happens.

      If one passes away, has no will and no spouse, it is called intestate and will depend on how much the decendents assets are worth. If may fall that no probabe will be required.

      If one passes away, has a spoudr, and no will, again, it will depend on how much the estate is worth, whether there is separate property, that is property acquired before the marriage, and community property, that is property acquired during the marriage.

      If one passes away, has a will, and a spouse, again, it will depend on how mcuh the estate is worth, whether probate will be necessary, and how separate and community property is divided amongst the heirs.

      This site has all the info you need for Washington Probate procedures.
      "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

      Comment


      • #4
        The important issue here that I was trying to understand is the person is a foreign person with a green card - not an american citizen - or only became an american citizen 2 days prior to her death and I was trying to understand the tax consequences at the different stages

        after she got married to an american - 2 months before she died


        after she got legalized


        does all of ones personal property become community property in the state of washington after you get married even if you still only hold a green card?

        If you haven't become a citizen yet and you are married and your assets/business is still in your personal name - the one with the green card - are there taxes due to the government - or does everything just go to the husband without tax consequences?

        Comment


        • #5
          <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
          What she asked was who gets what. Not if there will be probate. And what I posted are the general guidelines for Washington.

          One item I should have added is that having or not having a GC has little affect on the course of action concerning assets unless they be foreign. Foreign assets would be subject to the laws of the country they are located in .

          Taxes may be a slightly different matter with the decedents estate as to what portions are taxable versus not. </div></BLOCKQUOTE>
          Davdah,
          Probate helps determine who gets what under Washington State Law, whether or not if there is a will or no will.
          "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

          Comment


          • #6
            <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Alice Bossart:
            The important issue here that I was trying to understand is the person is a foreign person with a green card - not an american citizen - or only became an american citizen 2 days prior to her death and I was trying to understand the tax consequences at the different stages

            after she got married to an american - 2 months before she died


            after she got legalized


            does all of ones personal property become community property in the state of washington after you get married even if you still only hold a green card?

            If you haven't become a citizen yet and you are married and your assets/business is still in your personal name - the one with the green card - are there taxes due to the government - or does everything just go to the husband without tax consequences? </div></BLOCKQUOTE>
            If she has a green card and lives in Washington State as a resident, then state law will determine who gets what. If she has a will, that will also determine who gets what. If there is no spouse, then the immediate descents may need to petition the court, called probabe, if asset are worth more than 100k.

            Now, what you need to be careful of is that a resident of a state is different than being a legal resident. Sometimes, they do not coincide, but if she is a green card holder, then more than likely, she may be a resident.

            And depending on where she is a citizen of, there are about 11 gift and estate treaties taht are in effect. Sweeden went out of force sometime in 2008. This can determine who gets what.

            More than likely, you will need an estate or probate attorney if the green card holder passes away and the husband now has both community property and separate property, especially if there is no will.

            NOTE: Can you provide a timeline of the person you are talking about. I am not sure when she got her green card and when she passed away. This will help determine whether or not she is a resident of the state or not. That is the most important issue, not whether she has a green card or not.
            "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

            Comment


            • #7
              <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by davdah:
              The better question is why the curiosity with division of property conditions based on various circumstances of demise? Is one being picked? </div></BLOCKQUOTE>
              It is called estate planning Davdah. Or it could be that he is a beneficiary who may think they should have received something from the estate.

              NOTE: Do not confuse between inheritance tax, a state issue, and the estate tax, a federal issue.
              "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre

              Comment


              • #8
                I think you should get a will and be certain <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Alice Bossart:
                Hi there,

                I'm trying to understand the tax consequences for the following circumstances:

                if a person only has a green card - and no will and dies - my understanding is - everything they own goes to the US government.

                What happens if the person with the green card has a will. My understanding is than 40% goes to the American Governement.

                How does it change - if the person with the green card gets married to an american citizen and there is still no will and most of her assets are still her separate estate.

                What happens if she is married - still only has the green card but now has a will. What happens to her separate estate.

                If anybody can help me with some answers for this - that would be great.

                this is for the state of Washington </div></BLOCKQUOTE>
                Regards and thanks,
                Mary Josephine :-)

                Comment



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