Legal Question in Wills and Trusts in Massachusetts
Property transfer to a non resident alien
I am trying to figure out how to make sure I can transfer my primary residence to my ''significant other'' so that he can raise our daughter in our home if I should pass away. We are not currently married, but plan to marry in the next year. I am a US citizen, but he is a non resident alien (living here since 1977)and a citizen of Canada. Would this transfer be taxable due to his citizenship? Do any special rules apply? My estate will be over $1,000,000 if I died today.
1 Answer from Attorneys
Re: Property transfer to a non resident alien
There are several ways to handle the transfer without incurring a tax impact. Probably the best is to use a Trust naming your partner as beneficiary. This will avoid probate and will also protect your child in the event anything happens to both of you.
The second part of your question will depend in part upon the tax treaty between the US and Canada. I think based on your question and given that Massachusetts Law is to change significantly in the next six months, you should probably have a complete estate plan done. Also, if your significant other inherits the house, there may be Canadian Tax issues as well.
There are some additional issues that will come into play such as your partners status under immigration laws once you marry. I hope this was helpful.