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What Taxes Must a Foreign National Pay?

Question: My husband is a foreign national. What taxes will he pay if he inherits my assets—a whole life insurance policy and a 403(b) account?

– Rita Kushner, New York City

Answer: It depends largely on where he hangs his hat. If Uncle Sam considers your husband a resident for tax purposes (check IRS Publication 519 for guidelines), federal taxes apply as if he were a citizen, says Henry Alden, an international tax specialist at Everest International Group in Annapolis, Md. (States have their own laws.) If he’s not a resident, he could avoid a tax hit if there’s a favorable income-tax treaty with his country of residence, says Alden. The good news? The death benefit on your insurance policy will likely be tax-exempt—regardless of where your husband lives.


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    • The State of Illinois doesn’t respect any unnois. The governor for the last two years has worked to tell the people who work for the state that they would be getting a pay raise this year. After not having any raise for two years in a row..Now he is going to recant those very words he promised. How can anyone take this adminstration seriously if they barter to lessen the burden only to lie about when they are going to honor the contract they signed. Anyone else would have to pay up no one can tell the person they owe money to that they can’t pay this month don’t have the money. All creditors would take back what you owe them for. Amazing all the crap that politicians do to the very people who got them elected. I personally can’t stand anyone who is going to lie right to my face and then slap me on the back to congratulate me for being a good sport and understanding. Again what to do with these types of people they want their 100k pension when the rest of the state will only be able to live month to month. Just my thoughts .enjoy your day!

    • If rates are heading up as they suhold the Obama and Ryan budget assumptions are too optimistic. The US economy will collapse and has to readjust to the new reality since there will be no money to bail out malinvestments.

    • Eliminating collective baairingng is wrong. One doesn’t bring a sledgehammer to the baairingng table to destroy the table. Why is Walker so afraid of baairingng? Does he anticipate that he will be that incompetent at the baairingng table? If he means to cut a tough deal with the unions, that’s one thing, but to toss out the idea of even baairingng with them is wrong.As usual, Obama is timid and tepid on the issue. The fact is, this doesn’t “seem like” an assault on the unions, it is an assault on the unions.If you think that public employee unions are bad, you should look at the lawless, self-serving, government thugs that public employees have to work for. With reckless bosses like them, public employees NEED unions.

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