The Tax Law of Charitable Giving, 5th Edition

Chapter NineteenInternational Giving by Individuals Through Estates

1. § 19.1 Introduction
2. § 19.2 Estate Tax Rules
   1. (a) Transfer to Foreign Corporation Serving Charitable Ends
   2. (b) Transfer to Foreign Government Serving Public Purposes
   3. (c) Transfer to Trustee
   4. (d) Testamentary Charitable Remainder Trusts
3. § 19.3 Gift Tax Rules
4. § 19.4 Charitable Giving by Noncitizen Nonresidents
   1. (a) Estate Tax Rules
   2. (b) Gift Tax Rules for Nonresident Noncitizens

§ 19.1 Introduction

The treatment of gifts and bequests under U.S. estate and gift tax provisions¹ does not limit the use of funds overseas. The federal estate tax deduction² and the federal gift tax deduction³ permit bequests and gifts by U.S. residents to foreign organizations for charitable purposes. For estate and gift tax purposes, an individual is considered to be a resident of the United States if that individual maintains his or her domicile in the United States at the time of death or at the time of the gift, whichever is applicable.⁴

The federal estate tax charitable deduction provision is similar to the federal income tax charitable deduction provision⁵ in allowing deductions for gifts to U.S. governmental entities but not to foreign governmental units. Unlike the income tax rule, however, the federal estate tax rule permits deductions for bequests to charitable trusts without the requirement that the trusts be domestic organizations.

In the case of a nonresident who is not a U.S. citizen, gifts will be subject to the gift tax ...