1. Argentina, France (wealth tax no longer applies to financial assets and is only levied on real estate), Spain, Colombia, Switzerland and Italy all have some form of wealth taxes.
2. These are the estate, gift and generation-skipping transfer taxes.
3. See Estate of Khan v. Commissioner, T.C. Memo. 1998-22 where a Pakistani citizen who lived most of his life and died in Pakistan was found to be a U.S. domiciliary for purposes of the U.S. estate tax. Even though his wife and family still lived in Pakistan, the Tax Court felt he did not reestablish a domicile in Pakistan and other factors showed evidence of an intention to live in the U.S. indefinitely, such as his obtaining a U.S. green card and Social Security number; creating a U.S. Last Will and Testament; and holding significant business interests in the U.S. In the Estate of Nienhuys v. Commissioner, 17 T.C. 1149 (1952), a Netherlands citizen with a green card who was living and died in the U.S. was found to be domiciled in the Netherlands as evidence showed he always intended to return to the Netherlands and was only living in the U.S. because Germany had invaded the Netherlands. This case turned on the principle that once acquired a domicile is presumed to continue until it is shown to have been changed. In Paquette v. Commissioner, 46 T.C.M. 1400 (1983), the decedent was found domiciled in Canada at the time of his death. Even though he had purchased a vacation home in Florida that he visited annually over the course of 20+ years and no longer owned a home in Canada upon his death, he maintained numerous contacts with Canada. For example, he filed income tax returns and voted there, held a Canadian driver's license and passport, held most of his investment assets there and also purchased, registered and insured his car there.
4. Note that this exemption will sunset in 2026 when it will revert to the 2017 value of $5 million indexed for inflation. However, with a change of government possible this year there are tax proposals on the table that could reduce the exemption to $3.5 million earlier.
5. The U.S. has 15 estate and gift tax treaties globally with Australia, Austria, Canada, Denmark, Finland, Germany, Greece, Ireland, Italy, Japan, Netherlands, Republic of South Africa, Switzerland and the United Kingdom.
6. Internal Revenue Code Section 2056.
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