JACK: In general, what is the issue?

JOSH: Proper planning when a foreigner considers purchasing USA real estate is essential because how title is taken determines whether the property will be subject to federal and state estate tax upon the death of foreign owner. This concern applies whether title is taken in an individual’s sole name or jointly with another person including a spouse. I often have surviving spouses or family members of a deceased foreigner for whom I must handle (1) filing federal and state estate tax returns, (2) payment of estate tax, and (3) if the decedent owned the property in individual name, an ancillary or initial probate administration.

When the foreigner is still alive there may be a number of viable options available to minimise or avoid the exposure to estate tax and probate. When the FO is already deceased, there are very limited options depending upon the circumstances.