Asked in Estate Planning, Tax Law and Probate for Utah

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?

1 Lawyer Answer
Wesley Winsor
Wesley Winsor
PREMIUM
Answered
  • Estate Planning Lawyer
  • Saint George, UT
  • Licensed in Utah

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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.