A non US citizen Saudi Arabian estate tax - ask a

What are the rulles for a Saudi diplomat who passed away in the US leaving
three properties included in a will divided between a wife and two childern
(adults). Do they have to file for estate tax? if the answer is yes what
kind of percentage?
Thank You
I can also be reached @ 703 xxx-xxxx
david ingram replies:
Diplomats stationed in the US are generally exempt from any form of US
taxation with the exception of tax on rentals and tax on Dividends.
In general, a Diplomat is considered a non-resident and not taxed on earned
However, a Diplomat who is a non-resident who has investment property would
be taxable for estate purposes as any other non-resident would be.
The exemption for 2004 was $1,500,000 After that, the rates rise from a low
of 18% to a high of 55% of the estate.  Since his wife is not a US citizen,
she does not get the benefit of unlimited tax free rollovers to her.
You need to consult an estate person in the city or state where the property
is located to determine the estate tax liability.
My associate, George Arora is a CPA, MBA with a Masters of Taxation as well.
However, dealing with us in this situation makes no sense to me.
The estate exemption is to rise to $3,500,000 by 2009 and be eliminated in
2010 but that does you no good at this time.
The following table shows the rates of Estate Tax:
The following rates of gift and estate tax apply:
Column A		Column B			Column C			Column D
											Rates of Tax
Taxable		Taxable			Tax on 			on excess Amount
amount		amount in			over amount
--			10,000			----				18%
10,000		20,000			1,800				20%
20,000		40,000			3,800				22%
40,000		60,000			8,200				20%
60,000		80,000			13,000			26%
80,000		100,000			18,200			28%
100,000		150,000			23,800			30%
150,000		250,000			38,800			32%
250,000		500,000			70,800			34%
500,000		750,000			155,800			37%
750,000		1,000,000			248,300			39%
1,000,000		1,250,000			345,800			41%
1,250,000		1,500,000			448,300			43%
1,500,000		2,000,000			555,800			45%
2,000,000		2,500,000			780,800			49%
2,500,000		3,000,000			1,025,800			53%
3,000,000		10,000,000			1,290,800			55%
10,000,000		21,040,000			5,140,800			60%
21,040,000	----					11,764,800			55%
 The formatting above may not be correct.  However you can find the original
by going to www.centa.com and clicking on US / Canada Income Tax on the
right hand side.
Note that the exemptions in the reference above have not been changed.
I also welcome any comments from other members of this list who may have
some insight that I have missed.
So stay tuned.  I have added your name as well and if any of our other
experts have a contradictory opinion, they will let me know.
This from "ask an income tax and immigration expert" from www.centa.com
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