To secure a transfer certificate for an estate of a nonresident citizen of the United States, you need to follow specific filing requirements and provide necessary documentation. Here are the steps and requirements:
- Determine the Decedent's Status:
- Confirm that the decedent was a nonresident citizen of the United States at the time of death. This means the decedent was a U.S. citizen but not domiciled in the United States.
- File Form 706:
- You must file Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, if the decedent's worldwide estate exceeds the filing threshold. This form reports the decedent's worldwide assets and calculates the estate tax due.
- Required Documentation:
- Inventory of Property and Liabilities: Provide an inventory of the decedent's property and a schedule of liabilities, claims against the estate, and expenses of administration filed with any foreign court of probate jurisdiction. These documents must be certified by the foreign court.
- Foreign Tax Returns: Include a copy of any return filed under foreign inheritance, estate, legacy, succession, or other death tax laws, certified by an official of the foreign tax department.
- Certified Copy of the Will: Attach a certified copy of the decedent's will.
- Death Certificate: Provide a death certificate. If the decedent died abroad, include State Department Form DS-2060, Report of the Death of an American Citizen Abroad, or a death certificate issued by the foreign country, along with a copy of the decedent's current passport or other proof of U.S. citizenship.
- Submit the Transfer Certificate Request:
- A transfer certificate is a release of the Federal estate tax lien on a decedent’s property. To request a transfer certificate, you need to submit the required documentation to the IRS. The transfer certificate will be issued once the IRS verifies that all estate taxes have been paid or that no taxes are due.
- Additional Considerations:
- If the decedent's estate includes U.S. situs property, ensure that all such property is properly reported and valued on Form 706.
- If the decedent was a resident of a U.S. possession, special rules may apply. Verify the decedent's domicile and consult applicable estate tax treaties if necessary.
By following these steps and providing the necessary documentation, you can secure a transfer certificate for the estate of a nonresident citizen of the United States.
Sources:
Instructions for Form 706-NA (10/2022)
Publication 559 (2023)
IRM Part 4. Examining Process. Chapter 25. Estate and Gift Tax. Section 4. International Estate and Gift Tax Examinations
