Estate Planning for Green Card Holders and U.S. Immigrants

Green card holders and dual citizens face unique estate tax rules. Learn how to plan effectively and avoid common pitfalls.

Many Korean-American families include permanent residents, dual citizens, or recent immigrants. If you (or your parents) hold a green card or have U.S. citizenship alongside another country, it’s critical to understand how U.S. estate tax laws apply—and how to plan accordingly.

Why Residency Matters for Estate Tax

• U.S. citizens and permanent residents (green card holders) are subject to U.S. estate and gift tax on their worldwide assets, not just property in the U.S.

• Non-resident aliens (NRAs) are only taxed on U.S.-situs assets (like U.S. real estate and stocks) with a much smaller exemption.

If you have property overseas or expect to inherit assets from abroad, failing to plan properly could expose your estate to unnecessary U.S. tax.

Key Planning Tips for Immigrant Families

1. Know Your Residency Status for Tax Purposes

   It may differ from your immigration status. Long-term green card holders are usually treated as U.S. domiciles for estate tax.

2. Coordinate Cross-Border Planning

   If you own property in Korea or another country, ensure your U.S. and foreign estate documents work together.

3. Be Careful with Gifts

   Gifts to foreign spouses or transfers of foreign assets can trigger unexpected tax consequences without proper planning.

4. Consider Life Insurance and Trusts

   These can provide liquidity for estate taxes and help manage assets across jurisdictions.

   
   

   Don’t Overlook Special Rules

   Estate planning for immigrants and their families is more complex—but also offers unique opportunities. The right strategy can reduce taxes, avoid double taxation, and protect your heirs.

   
   

   Contact The Law Office of Jin-Wook Kim, P.C. to build an estate plan that fits your family’s international needs and goals.