Section 11.19 Introduction

• Library: Estate Administration 2014 Supp

A. (§11.19) Introduction

The United States imposes a transfer tax, known as the estate tax, on two categories of persons:

1. Citizens or residents of the United States, I.R.C. § 2001

2. Persons who are neither residents nor citizens of the United States, I.R.C. § 2101

While United States citizens and residents who are not citizens (aliens) are subject to United States estate taxation on property located throughout the world, nonresident aliens are subject to United States estate taxation only on property “situated in the United States.” I.R.C. §§ 2103 and 2031(a). Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States, is used to prepare the nonresident alien’s return, rather than the conventional Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. Form 706 is available at:

www.irs.gov/pub/irs-pdf/f706.pdf

Form 706-NA is available at:

www.irs.gov/pub/irs-pdf/f706na.pdf

The estate tax will not apply to the estates of decedents dying after December 31, 2009. I.R.C. § 2210 (added by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), Pub. L. No. 107-16, § 501(a), 115 Stat. 38). But after December 31...