Transfer certificate

• Tax Penalty Abatement • FBAR / FATCA Advocacy • Mediation • Employment Law • Team • Contact • +1 (914) 816-2900 • Elder Law • Guardianship • Last Will and Testament • Power of Attorney • Trust Planning and Administration • Estate Planning & Administration • Medicare • Medicaid and Asset Protection • Special Needs Planning for Supplemental Security Income & Medicaid • Health Care Directives • Trusts and Estates • Trust Planning and Administration • Estate Administration • Will and Trust Attorney • Special Needs Planning • Tax Advocacy • Tax Penalty Abatement • FBAR / FATCA Advocacy • Mediation • Employment Law Posted in by A tax transfer certificate is a document issued by the U.S. Internal Revenue Service certifying that a United States citizen who died while living abroad does not owe the federal government any estate taxes. Banks and financial services companies require an IRS tax transfer certificate before they release any of the assets held with the decedent named as an account owner. Why Would You Need a Tax Transfer Certificate? Most U.S. citizens who reside in other countries keep a substantial portion of their financial assets and resources in the U.S., even when they have lived abroad for many years. If the decedent died in the United States, their For example, a joint bank account with right of survivorship would simply pass outside probate to the joint account owner instantly, by operation of law. However, when a decedent dies while residing outside the U.S.,...

In this article, we’ll explore obtaining the IRS transfer certificate and explain how Introduction to IRS Transfer Certificate and Form 706 NA When a non-US Person passes with US situs financial assets, it often creates issues for descendants. 1. They are unable to access the accounts until they have an 2. They cannot get an 3. They cannot get a closing letter until they file the Let’s go through this step by step The purpose of Form 706-NA Internal Revenue Code (IRC) § 2101 imposes a transfer tax on the estate of any non-resident, non-citizen, of the Who must file Form 706-NA The executor of a non-resident alien decedent’s estate must file Determining the taxable estate Gross estates of non-resident aliens with property located in the U.S., and valued at $60,000 or more, might be subject to estate tax. This is before taking into account any “allowable deductions” or estate-tax treaties between the U.S. and the non-resident alien’s home country. The value of the decedent’s gross assets is determined at the date of the decedent’s death or, six months later, on the alternate valuation date. Property located in the U.S., allowable deductions and credits For real estate and tangible personal property, “located in the U.S.” is determined by physical presence in the U.S. (regardless of where the owner resides). If a non-resident alien buys stock in a U.S. corporation (e.g., General Electric), the stock is considered located in the U.S., regardless of where the stock certificates...

Individuals living outside of the US who inherit a US asset from a foreigner may be in for some surprises. If the decedent is an individual who is treated as a nonresident alien individual (NRA) for US estate tax purposes, his heirs often have a difficult time obtaining actual title to the US asset they inherited. My The challenge to obtaining title to inherited US assets arises because the heir must obtain what is called a federal “transfer certificate” (TC) in order to acquire title to the inherited property. Obtaining this TC is a time-consuming and costly process, but US custodians (e.g., a US broker or a US corporation) will not transfer the property unless the TC is presented. Today’s blog post will educate readers about the TC. US Estate Tax – Who’s Liable for it? The US estate tax is paid by the estate and generally, is a tax assessed on the fair market value of the decedent’s assets. For NRA decedents only US-situs assets are part of the US taxable estate. Under various US tax law provisions, upon an individual’s death, a federal tax lien is automatically imposed against the decedent’s assets for the estate tax that may be owed. This lien arises by operation of law and thus, it comes into existence even if the property does not come within the decedent’s estate (i.e., the probate estate controlled by the executor or administrator) but instead passes directly to a beneficiary outside of probate. This may happen for example with a “transfer-on-death” beneficiary des...