Q: Is cash in the savings account of the non resident alien decedent taxable by the federal estate tax?
IRS states as follows in their website
The property includible in the U.S.-situated gross estate for a nonresident not a citizen includes only assets “situated” in the United States, such as:
1. U.S. real estate,
2. All tangible property located in the United States,
3. Certain intangible property, such as U.S. marketable securities,
4. Debt obligations of a U.S. person [or the United States (including a State or any political subdivision)],
4. A U.S. trade or business, and bank accounts used in connection with a U.S. trade or business,
5. Assets that at the time of transfer or at the date of death were U.S.-situated, and those assets become includible in the gross estate under Internal Revenue Code sections 2035 – 2038.
Based on this list, I don't see where cash will be included. Does that mean cash is not taxable?
A:
Cash is considered tangible personal property. In your case, money held in the bank would either be deemed "cash" or "intangible" property.
I hope this helps.
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