On Friday, May 1, 2025, Max P. Biedermann, Christina N. Romero, and I were thrilled to present “Expatriation From the United States” at the American Bar Association, Section of Real Property, Trust and Estate Law Annual CLE Conference in Las Vegas. We considered how one expatriates, by relinquishing U.S. citizenship or abandoning lawful permanent resident (“green card”) status. We reviewed who is a covered expatriate, and the income tax consequences of expatriation by a covered expatriate. We noted that the gross estate of an expatriate includes property situated in the U.S., but that the applicable exclusion amount of such estate is limited to $60,000, or a unified credit of only $13,000. We noted that if a covered expatriate makes gifts to U.S. citizens or residents, under Internal Revenue Code Section 2801 the donee U.S. citizens or residents are subject to U.S. gift tax on the gifts. We noted that an expatriate may avoid U.S. income tax going forward, but that such benefit may be illusory given the foreign earned income exclusion and the foreign tax credit available to a U.S. citizen or resident. We considered scenarios in which it might make sense for an individual to expatriate from the United States.
The presentation was well-attended, and we received several insightful questions. Look for our article on the subject of the presentation in an upcoming issue of the Section of Real Property, Trust and Estate Law’s Probate and Property Magazine.
