Henry, a U.S. citizen, and his non-citizen spouse, Anita, are a wealthy married couple living on a
Question:
Henry, a U.S. citizen, and his non-citizen spouse, Anita, are a wealthy married couple living on a ranch that Henry acquired several years prior to their marriage. Henry is concerned about owing significant estate taxes at his death and would like to implement an asset protection strategy. Which one of the following statements is correct regarding the marital deduction and a non-citizen spouse?
A transfer to a non-citizen spouse may qualify for the unlimited marital deduction only if the non-citizen spouse attains U.S. citizenship prior to the filing of the decedent’s estate tax return.
A transfer to a non-citizen spouse may qualify for the unlimited marital deduction if the assets are transferred in a qualified domestic trust.
A transfer to a non-citizen spouse may qualify for a limited marital deduction up to $1 million.
A transfer to a non-citizen spouse may qualify for the limited marital deduction if the assets are transferred in a qualified bypass trust.
Expert Answer:
The answer is D A transfer to a noncitizen spouse may qualify for a limited marital deduction if the ... View the full answer
