Surviving spouse not a US citizen

[glm777]

What is the name of your state? Massachusetts

My father passd away last week leaving a home owned jointly by him and my mother (heavily mortgaged) and amoderate life insurance policy. I've read several places that my mother does not have to pay estate or inheritance tax (total assetts <$250,000). However I just read that this is only true if the spouse is a US citizen. y mother is not a citizen but she has livied in this country for 48 years, worked most of those years and receives social security benifits. She does have a valid green card. Can anyone clarify this?
Also, who should we see when the insurance money comes in to be sure we do not owe any taxes - a lawyer? Which type of lawyer or service can help us?
Thanks.

 

[gowest]

When a U.S. citizen dies, his or her assets are subject to federal estate taxes if they exceed the unified credit equivalent. In 2003, this amount is $1,000,000. of assets.

Assets that pass to a U.S. citizen spouse can generally qualify for an unlimited marital deduction, which will defer any estate tax until the surviving spouse dies. However, if the surviving spouse is not a U.S. citizen, the transfer will not qualify for the "unlimited marital deduction"...which means your father's estate would be subject to estate taxes if it were valued over $1,000,000.

You stated that the total assets were less than $250,000.... therefore, estate taxes are not applicable.

The insurance money does not go through probate, if there was a beneficiary named. It will however be included as an asset of the estate for estate tax purposes. A good accountant should be able to help you with your tax questions.

My condolences to you and your family.