New York Attorney Giving Non-U.S. Citizens the Representation You Need for Estate Planning

America is a country of immigrants. Since its very beginnings, we have welcomed those fleeing persecution and seeking a new life. One of our most iconic treasures, the Statue of Liberty, is an ode to the people who have chosen the U.S. as their home. While America opens its arms to all people, the path to citizenship can be long. To ensure the country’s security and stability, becoming a U.S. citizen is an involved process that can take many years.

Because America is welcoming to those from other countries, people are allowed to live and work in the U.S. while they work towards citizenship. During this time, non-U.S. citizens may become the beneficiaries of wills or living trusts. Non-U.S. citizens may also make their own wills and trusts. If you or a loved one is a non-U.S. citizen who has either been named a beneficiary in someone else’s estate plan or if you are planning on making your own, it is vital to understand your rights under the law.

What is Estate Planning?

Estate planning is the process of determining how assets and other concerns will be dealt with when a person comes ill and/or passes away. Estate plans attempt to cover all of a person’s legal and financial concerns. Things addressed in an estate plan can include:

•       Medical Directives
•       Power of Attorney
•       Inheritance of Property and Money
•       Custody of Minor Children
•       Wills
•       Living Trusts

An estate plan lays out a course of action. It can transfer power of attorney to a loved one or trusted individual to take care of financial concerns. It can also list medical directives for an individual’s care, particularly when one is unable to make those decisions themselves. Estate plans can also establish who will obtain custody of minor children. They can also include living trusts and wills. Living trusts are an arrangement in which a living person transfers responsibility of assets to a trustee. This trustee will then be responsible for distributing those assets. A will is different from a trust. It contains instructions for distributing assets after a person’s death. A will can also contain instructions for funerals or burials and other specific information not covered elsewhere.

Someone does not have to be a U.S. citizen to be named as a beneficiary in a will or trust. The United States allows people to distribute their personal property to anyone they wish. The law also allows non-U.S. citizens to be executors of wills, as long as they reside in the same state where the will applies. This means non-U.S. citizens can inherit property from U.S. citizens. It also means non-U.S. citizens can be involved in different stages of the estate planning process.

Who are Considered Non-U.S. Citizens?

A non-U.S. citizen is anyone who does not hold U.S. citizenship. The majority of people currently residing in the United States qualify as citizens. This is because according to the 14th Amendment, anyone born in the U.S. automatically becomes a citizen.

People who come to the United States fall into different categories. While there are many sub-types of immigrant status, they broadly fall into one of three categories:

•       Lawful Permanent Resident (LPR)
•       Nonimmigrant
•       Undocumented Immigrant

Lawful permanent residents are people who have applied to live and work on a long-term basis in the United States with the intention of becoming citizens. They receive a document called a Green Card. This allows them to receive certain benefits such as Social Security and Medicare.

Nonimmigrants are people who have come to the United States intending to live and work here but who may not be seeking citizenship status. There are more than forty types of Nonimmigrant.

Undocumented immigrants are those who have entered the United States but not gone through the legal process of being recognized as immigrants. Undocumented immigrants may not be able to work legally in the United States and may face other difficulties.

How Does Citizenship Status Impact Estate Planning?

People living in the United States are subject to U.S. inheritance laws. These laws can vary depending on the legal status of the person who is inheriting money or property.

Although non-U.S. citizens can inherit wealth and property, they may be subject to certain penalties. For example, a U.S. citizen can leave their citizen spouse any amount of money in a will. A non-U.S. citizen may be subject to certain taxes and penalties that reduce the inherited amount.

Non-citizens may also run into difficulties when it comes to estate taxes. Estate taxes are taxes paid on inherited wealth. The estate tax as of 2024 is 40%. Currently, U.S. citizens inheriting wealth are exempt from taxes on the first $12,920,000. Non-U.S. citizens are only exempt from taxes on the first $60,000. This means if you are a non-U.S. citizen inheriting any amount of money over $60,000, you will have to pay a 40% tax. This means you could lose almost half of the amount you might inherit.

Many of these taxes and penalties can change depending on a non-U.S. citizen’s category status. For example, a Lawful Permanent Resident may not be penalized as much in taxes as a nonimmigrant. There are some ways a non-U.S. citizen can avoid certain taxes and penalties. If a non-U.S. citizen is married to a U.S. citizen, they can set up a Qualified Domestic Trust (QDOT). This is a special type of trust for spouses. The QDOT allows the citizen spouse to leave money and property to the trust instead of their spouse directly. The non-citizen spouse is the named beneficiary of the trust. This allows the non-citizen to collect assets from the trust when the citizen spouse passes away.

How Should I Handle Estate Planning if I am a Non-U.S. Citizen?

Estate planning already involves many complex laws that are difficult for U.S. Citizens to understand. These laws only become more complicated when non-U.S. Citizens become involved. If you or a loved one’s estate plans involve a non-U.S. citizen, don’t hesitate to contact the law offices of the Davidov Law Group. We’re located at 1981 Marcus Avenue, Suite 231 New Hyde Park, NY 11042, one mile West of Clinton G. Martin Park and two-and-a-half miles South of North Shore University Hospital.

Our dedicated attorneys are highly experienced in the complicated world of estate law. We know all of the difficulties faced by non-U.S. citizens inheriting wealth and are experienced in making sure you and your loved ones collect everything you’re entitled to. Our flat-rate pricing means there are no hidden or surprise fees. You don’t even have to pay us until after we’ve settled your case and gotten you everything you deserve.

We have a deep compassion for non-U.S. citizens and want to make sure their legal rights are respected. If you or a loved one have concerns about estate planning involving a non-U.S. citizen, contact the Law Offices of the Davidov Law Group right away at 516-253-1366 or email us for a free consultation. Immigration status shouldn’t be a roadblock to inheriting what’s rightfully yours.