It makes no difference whether the property itself or equivalent compensation is transferred before, or after the decree dissolves the marriage.
The U.S. federal Estate and gift tax marital deduction is only available if the surviving spouse is a U.S. citizen.
If the surviving spouse becomes a U.S. citizen, principal remaining in a Qualifying Domestic Trust may then be distributed without further tax.
The American taxation system began when President Abraham Lincoln imposed taxes to fund the revenue required for the Civil War.
[1] After much debate, America revoked its tax system until 1894 when the Wilson Tariff Act was enacted.
[7] Credits are the sum deducted from one's payment owed to the federal, state, or local entity.
[8] Credits allow taxpayers to pay less in taxes, while deductions can reduce taxable income.
[14] The citizenship requirement allows some exceptions for foreign marriages, but for those who are American citizens you must be legally married in a state.
[15] Additionally, the donee (the person receiving the property) must be a United States citizen unless the gift was made before 1992 and resulting from a joint and survivor annuity.
[25] Prior to the dismissal, Lee submitted an affidavit admitting that the Mexican divorce was invalid, but that matter was not revisited.
[26] However, on that same day the New York Supreme Court made their decision to dismiss the temporary injunction, Leo remarried a woman named Lee in Connecticut.
[27] After the ruling, neither party appealed resulting in a final judgment [28] Thereafter, Leo lived with Lee until his demise on February 21, 1968.
The U.S. federal estate and gift tax marital deduction is only available if the surviving spouse is a U.S. citizen.
If the surviving spouse becomes a U.S. citizen, principal remaining in a Qualifying Domestic Trust may then be distributed without further tax.