Frequently Asked Questions
Who is eligible for the Nonresident Marital Deduction?
Available to nonresident non-citizens; typically requires the use of a Qualified Domestic Trust (QDOT) if the surviving spouse is not a U.S. citizen.
How does the Nonresident Marital Deduction work?
Allows a marital deduction for property situated in the U.S. under the principles of section 2056.
What law authorizes the Nonresident Marital Deduction?
The Nonresident Marital Deduction is authorized under IRC §2106(a)(3) of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §2106
Source: Internal Revenue Code, Title 26, United States Code
§ 2106. Taxable estate(a) Definition of taxable estateFor purposes of the tax imposed by section 2101, the value of the taxable estate of every decedent nonresident not a citizen of the United States shall be determined by deducting from the value of that part of his gross estate which at the time of his death is situated in the United States—(1) Expenses, losses, indebtedness, and taxesThat proportion of the deductions specified in sections 2053 and 2054 (other than the deductions described in the following sentence) which the value of such part bears to the value of his entire gross estate, wherever situated. Any deduction allowable under section 2053 in the case of a claim against the estate which was founded on a promise or agreement but was not contracted for an adequate and full consideration in money or money’s worth shall be allowable under this paragraph to the extent that it would be allowable as a deduction under paragraph (2) if such promise or agreement constituted a bequest.
(2) Transfers for public, charitable, and religious uses(A) In generalThe amount of all bequests, legacies, devises, or transfers (including the interest which falls into any such bequest, legacy, devise, or transfer as a result of an irrevocable disclaimer of a bequest, legacy, devise, transfer, or power, if the disclaimer is made before the date prescribed for the filing of the estate tax return)—(i) to or for the use of the United States, any State, any political subdivision thereof, or the District of Columbia, for exclusively public purposes;
(ii) to or for the use of any domestic corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office; or
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