- § 17.1 Overview of Law
- § 17.2 Estate Tax Law
- § 17.3 Gift Tax Law
- § 17.4 Charitable Giving by Noncitizen Nonresidents
§ 17.1 OVERVIEW OF LAW
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 their 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 if they are not made to a domestic ...