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
  • 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.

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