Estate Planning for a US Citizen Married to a Non-US Spouse

Estate planning can change when a US citizen is married to a non-US spouse because US estate and gift tax rules may treat transfers differently where the spouse is not a US citizen.

A review should usually consider:

• whether one spouse is a US citizen
• whether one spouse is a green card holder
• whether one spouse is not a US citizen
• where each spouse is domiciled
• where each spouse is tax resident
• how assets are owned
• whether assets are held jointly
• whether there are US situs assets
• whether there are foreign assets
• whether retirement account beneficiaries are up to date
• whether life insurance beneficiaries are up to date
• whether wills work across countries
• whether a QDOT may be relevant
• whether gifts have been made between spouses
• whether local inheritance tax applies
• whether forced heirship or local succession law applies
• whether children or beneficiaries live in different countries
• whether future relocation is likely

The IRS Form 706 instructions say the marital deduction is allowed for transfers to a surviving spouse who is not a US citizen only if the property passes to a qualified domestic trust, or QDOT, or if the property is transferred or irrevocably assigned to a QDOT before the estate tax return is filed.

The IRS also says the annual exclusion for gifts to a spouse who is not a US citizen is $194,000 for 2026.

That means mixed-nationality couples should not assume that ordinary married-couple estate planning rules will automatically apply in the same way.

Many married couples assume that if one spouse dies, the surviving spouse can simply inherit everything.

That assumption can be dangerous for mixed-nationality couples.

The legal documents may say one thing.

The tax rules may say another.

The account provider may need separate beneficiary forms.

The retirement account may follow plan rules.

The property may be governed by local succession law.

The family may be living in a country that does not treat inheritance in the same way as the United States.

The estate plan should review:

• what the will says
• what beneficiary forms say
• who owns each account
• who owns each property
• who controls the assets after death
• whether the surviving spouse is a US citizen
• whether QDOT planning is needed
• whether local inheritance tax applies
• whether a foreign will is needed
• whether a US will is needed
• whether trusts create reporting issues
• whether children from previous relationships are involved
• whether guardianship documents are up to date
• whether enough liquidity exists
• whether the surviving spouse can access accounts
• whether retirement income continues

The goal is not to make the estate plan overly complex.

The goal is to avoid the surviving spouse being left with tax, probate, liquidity, account access or legal problems at the worst possible time.

This page is for general information only and does not constitute personalised financial, tax, legal, estate planning, trust, gift tax, inheritance tax, probate, matrimonial property, investment, pension transfer, US tax, local tax, QDOT or currency advice.

US estate tax, gift tax, marital deductions, QDOT planning, Form 706, Form 709, non-US spouses, US situs assets, foreign assets, foreign property, retirement accounts, life insurance, beneficiary forms, wills, probate, local inheritance tax, forced heirship, estate tax treaties, currency and future residence depend on personal circumstances and may change.

US tax advice should be taken from a suitably qualified US tax adviser or CPA. Estate planning, legal, probate, trust, family law and local tax advice should also be taken from appropriately qualified advisers in each relevant jurisdiction.

Financial planning should be coordinated with legal, tax, trust, estate, pension, investment and insurance advice where appropriate.

Do not rely on general information when preparing wills, trusts, tax filings, beneficiary forms, QDOTs or estate planning documents.

Investing involves risk. Pension, retirement account, property and investment values can fall as well as rise, and you may get back less than you invest.

Currency movements can affect the value of estates, gifts, inheritances, property, pensions, investments, insurance proceeds and future spending.