USA – NEW YORK Law and Practice Contributed by: John M. Teitler, Nancy A. Murphy and Constance E. Shields, Teitler & Teitler, LLP
• The deceased parent consented in writing to post- humous reproduction. • The parent authorised the use of genetic material after death. • The child must be in utero within a specified time period after death (generally within 24 months). • Notice must be provided to the estate representa- tive. If these requirements are met, the child may inherit as Family relationships are governed under state law and not federal law. However, conflicts may arise if there are separate states involved with differing rules. This is seen in estates that may have property in different states and where there are different definitions of chil- dren or descendants for adopted children, stepchil- dren, and posthumously conceived children. Conflicts are often addressed on a state-by-state basis based on the location of physical property, domicile of a decedent in an estate, or the governing law of a trust. a descendant of the deceased parent. 11.2 Conflicts and Divergent Laws 12. Cross-Border Succession Planning 12.1 Taxation of Cross-Border Estates and Transfers Succession planning for families with multi-state or international assets raises complex issues under both US federal tax law and New York state tax law. The US taxes wealth transfers on citizenship, domicile, and asset location, therefore, consideration must be made as to how these rules intersect when individuals, ben- eficiaries, and property span multiple jurisdictions.
Unlike many countries, the US taxes the estates of US citizens and domiciliaries on their worldwide assets. A person who is not a US resident or a US citizen is subject to US estate tax only on US-situs assets, such as: • US real estate; • shares of US corporations; and • tangible property located in the United States. A non-citizen who is non-resident in the US receives a much smaller estate tax exemption amount of only USD60,000. Non-US persons may consider using foreign holding companies, offshore trusts and debt instruments to hold US assets. The US has entered into estate tax treaties with sev- eral countries, reducing the possibility of double taxa- tion for their citizens. The treaties also often clarify situs rules, set forth credits for foreign death taxes, and provide for expanded exemptions for non-resi- dent decedents with US property.
253 CHAMBERS.COM
Powered by FlippingBook