Sebastian D'Acunto Quoted on Estate and Gift Tax Considerations for Non-U.S. Citizen Spouses

Pullman & Comley Trusts and Estates attorney Sebastian D’Acunto was interviewed for “How to Avoid Making Financial Mistakes if Your Spouse Isn’t a U.S. Citizen,” in Barron’s, a leading financial publication covering markets, wealth management, and personal finance. In the article, Seby discusses key estate and gift tax considerations that arise when one spouse is not a U.S. citizen, particularly the loss of the unlimited marital deduction and the resulting planning implications for jointly held assets, foreign holdings, and overall estate structure.

The article explains that federal tax rules generally allow unlimited transfers between spouses without triggering estate or gift tax; however, noncitizen spouses are not eligible for this benefit, which can create unexpected tax exposure. “It’s as if you’re not married for tax purposes,” Seby says. 

A dual U.S./Italian citizen, Seby often helps couples in which only one spouse is a U.S. citizen avoid common pitfalls. In the interview with Barron’s, he notes that, “If the couple’s assets are significantly under $15 million, it may not be much of a concern for federal purposes, but some states, like Rhode Island and Massachusetts, have much lower exemption thresholds, so where you live also plays into these decisions.” The article also highlights the potential gift tax consequences of adding a noncitizen spouse to jointly owned assets, noting that, “A gift-tax return would need to be filed, and the gift would eat into the U.S. spouse’s lifetime gift and estate tax exemption, which is $15 million per individual.” As Seby explained to Barron’s, “You can put them on accounts; you just have to be careful of the annual exclusion.”

To read the full article, please visit the Barron’s website.