On December 22, 2017, Public Law 115‑97 ("Tax Cuts and Jobs Act") was enacted. Sec. 11061 of the Act more than doubles the estate and gift tax exemption amount for decedents dying or gifts made after December 31, 2017, and before January 1, 2026, by increasing the basic exclusion amount under IRC §. 2010(c)(3) from $5 million to $10 million. (Under current law, the amount is indexed for inflation occurring after 2011.). Adjusting the base amount for inflation results in a 2018 exclusion of $11.2 million for individuals and $22.4 million for married couples. IRC §§ 2101-2108 which pertains to the "Estates of Non-Residents Not Citizens," was not amended. Accordingly, the estate and gift tax exemption amount for decedents dying or gifts made after December 31, 2017, and before January 1, 2026 remains to be the relatively meager amount of $60,000. However, if the non resident alien decedent was domiciled in Germany, the estate can claim a prorated unified credit based on the ratio of U.S. situs assets to worldwide assets.
Estate Tax: Effect of the Tax Cut and Jobs Act on German Domiciliaries
Do you have any questions? We would be pleased to assist you. To make getting in touch with us as simple and efficient as possible for both parties, we ask you to primarily use our contact form for your questions. Please describe the matter as clearly as possible. You can also add attachments. After sending your inquiry, the attorney responsible will contact you either by telephone or by e-mail within 24 hours and, where necessary, pose further questions or submit a proposal for consultation.
Of course, you can also call us directly to make an appointment for a personal consultation or telephone consultation (find contact details here). All potential clients will be informed in advance of any costs that may be incurred during the initial consultation
Related publications
- German Inheritance Tax - FAQ
- Recognition of a Will executed under the laws of California in Germany
- German Inheritance Law: The Compulsory Share
- Taxation of the Estate of Nonresidents under U.S. Domestic Law
- Administration of a U.S. Domiciled Decedent’s German Assets by a U.S. Personal Representative
- Disclaiming an Inheritance in order to avoid German Inheritance Tax
- Determination of the Law Applicable to German-Californian Estate Matters
- Recognition of a German Will in Florida as Regards to Form
- Usufruct in German Civil and Tax Law – Introduction
- Community of Co-Heirs in Germany
- Executor of the Estate under German Law
- German Gift Tax
- Durable Executor
- Liability for Estate Debts in Germany
- German American Estate Planning
- U.S.-Trusts in German-American Estate Planning
- German Inheritance Law - FAQ
- German Inheritance Tax
- Taxation of Capital Gains on Sale of Real Property situated in Germany and German-American Estate Planning
- Taxation of a Deed of Variation in Germany
- Taxation U.S. Citizens/Residents of Rental Income Derived from Real Property Located in Germany
- Real Property Capital Gains Taxation for Non-Resident Aliens Residing in Germany
- Gifts from Abroad to U.S. Persons -1
- Taxation of Rental Income Derived from Real Property located in the U.S. for Non-Resident Aliens Residing in Germany
- Trust Quaterly Review: Election Fever
- STEP Journal: "A turn for the wurst"
- Disclaiming an inheritance under German law
- Gifts from Abroad to U.S. Persons
- Probate and Estate Planning in California: Issues Associated with Alzheimer’s disease and Dementia
- Intestate Succession in Germany
- The Impact of Community Property on Inheritance Matters
- Intestate Succession and California
- Mixed Marriages: U.S. Tax Implications for U.S. Citizens Married to German “Aliens”
- Mental Incapacity and Will Contests in Germany
- Taxation of Distributions from an inherited IRA to a person Resident in Germany
- Living will, Durable power of attorney and appointment of custodian in Germany
- Wills in Germany
- Preliminary and Subsequent Heirs under German Law
- Forced Heirship under German Law
- Taxation of the Estate of Non-resident US-citizen in Germany
- U.S. Federal Estate Tax on the U.S. Estate of German Citizen resident in Germany
- Decisions of European Court of Justice on Inheritance Tax
- German Certificate of Inheritance
- The Administration of a U.S. Domiciled Decedent’s German Assets
- Taxation of U.S.-Trusts under the German Inheritance and Gift Tax Act
- International Probate: Germany
- USA: Estate Tax treaties
- Recognition of a German Will in California as regards to Form