The Short Answer
US estate tax turns on two things most people never consider: citizenship and domicile (where you truly make your home). Get those wrong, or simply have a non-citizen spouse, and two harsh rules can hit: a US estate-tax exemption as low as $60,000 instead of $15 million, and the loss of the unlimited transfer between spouses unless you use a specific trust called a QDOT. These rules are fixable, but only if someone spots them before it is too late.
The $60,000 Trap
If you are a non-resident who is not a US citizen and you own US assets, the US taxes those assets at death with an exemption of only $60,000, and up to a 40% rate above it. The assets that count are "US-situs" property: US real estate, tangible things located here, and shares of US companies. A foreign parent who owns a $2 million Florida condo, or a US brokerage account, can leave their family a very large US estate-tax bill, where a US person with the same assets would owe nothing. Structuring how those assets are held can dramatically reduce the exposure.
The Non-Citizen Spouse Trap, and the QDOT
Normally, anything you leave your spouse passes free of estate tax. But if your spouse is not a US citizen, that unlimited marital deduction does not apply, so assets above the exemption can be taxed at the first death, even though they are going to your spouse. The standard fix is a QDOT, a qualified domestic trust. If the assets pass into a QDOT instead of outright, the marital deduction is preserved and the tax is deferred while your spouse is alive. (Lifetime gifts to a non-citizen spouse are also capped, $194,000 a year in 2026 rather than unlimited.) For a couple where one spouse is not a US citizen, the QDOT is often the heart of the plan.
The US-Israel Gap (and Other No-Treaty Countries)
The US has estate or gift tax treaties with only a handful of countries, such as the UK, Germany, France, and Canada, that soften these rules. Israel is not one of them. For US-Israel families, that means no treaty relief, the full force of the non-resident rules, and a real risk of the same assets being taxed on both sides of the ocean. This is exactly why families split between the US and Israel need deliberate cross-border structuring rather than a standard plan. See our guide for Americans in Israel →
The Other Half: Your US Assets, While You Are Alive and at Death
Tax is not the only problem. If you live abroad and become incapacitated, a US bank or brokerage generally will not honor a foreign power of attorney, so without a proper US document your family may need a US court just to reach your US accounts. And at death, US assets pass through US probate in the state where they sit, public and slow, unless structured to avoid it. The fixes are a US power of attorney and HIPAA authorization, and holding US assets so they pass outside probate, often through a trust.
A non-citizen spouse, or US assets and a life abroad?
Book a free 30-minute consult. We will map the US side of your plan and coordinate with your advisers at home, before a $60,000 exemption or a frozen account becomes your family’s problem.
Book your free consultHow Florida Fits a Cross-Border Plan
Florida is a strong base for the US side: no state income or estate tax, a modern trust law, and tools like the community property trust and long-duration trusts. With a Florida trustee, a family living abroad or in another state can use Florida’s structures for their US assets. We serve as the US quarterback, building the US documents and coordinating with your accountant and counsel in Israel or your home country, so both sides fit together. For married US citizens, portability is part of the picture too.
Frequently Asked Questions
Why Is Estate Planning Different for Non-US Citizens?
Because US estate tax turns on two things most people never think about: citizenship and domicile (where you truly live). A US citizen or a non-citizen who lives permanently in the US gets the full federal exemption (about $15 million in 2026). But a non-resident who is not a US citizen gets only a $60,000 exemption on their US assets, and a non-citizen spouse loses the usual unlimited transfer between spouses unless a special trust is used. The same family wealth can be taxed completely differently depending on these facts.
What Is the $60,000 Estate Tax Trap?
If you are a non-resident and not a US citizen but you own US assets (US real estate, tangible property here, or shares of US companies, called "US-situs" assets), the US taxes those assets at death with an exemption of only $60,000, and up to a 40% rate above that. Compare that to the roughly $15 million a US person gets. A non-resident who owns a $2 million US property can face a very large US estate-tax bill that careful structuring could have reduced or avoided.
My Spouse Is Not a US Citizen. What Changes?
The biggest change is the marital deduction. Normally, everything you leave your spouse passes free of estate tax. But if your spouse is not a US citizen, that unlimited deduction does not apply, so assets above the exemption can be taxed at the first death, even though they are going to your spouse. The fix is a QDOT (a qualified domestic trust): if the assets pass into a QDOT instead of outright, the marital deduction is preserved and the tax is deferred. Lifetime gifts to a non-citizen spouse are also capped ($194,000 a year in 2026, indexed) instead of unlimited.
What Is a QDOT (Qualified Domestic Trust)?
A QDOT is a trust designed to let a non-citizen surviving spouse receive assets while preserving the estate-tax marital deduction that would otherwise be lost. At the first spouse’s death, assets pass into the QDOT rather than outright to the non-citizen spouse; the spouse benefits from the trust during life, and the deferred estate tax is handled under specific rules (the trust needs at least one US trustee, among other requirements). For a married couple where one spouse is not a US citizen, a QDOT is often the central tool.
Is There a Tax Treaty Between the US and Israel?
No, and this is a costly gap for US-Israel families. The US has estate or gift tax treaties with only a limited set of countries (such as the UK, Germany, France, and Canada), and Israel is not one of them. Without a treaty, there is no relief from the harsh non-resident rules and a real risk of the same assets being taxed on both sides. Families split between the US and Israel need cross-border structuring precisely because the treaty safety net does not exist.
What Happens to My US Assets if I Live Abroad and Die or Become Incapacitated?
Two problems most families abroad have never addressed. If you become incapacitated, a US bank or brokerage generally will not honor a foreign power of attorney, so without a proper US power of attorney your family may need a US court to access your US accounts, from thousands of miles away. And at death, your US assets go through US probate in the state where they sit, public and slow, unless they are structured to avoid it. Both are fixable with the right US documents.
How Does Florida Fit In for a Cross-Border Family?
Florida is a useful base for the US side of a cross-border plan: no state income or estate tax, a strong trust law, and tools like the community property trust and long-duration trusts. With a Florida trustee, a family living abroad or in another state can use Florida’s structures for their US assets. We act as the US quarterback, building the US side and coordinating with your accountant and counsel in Israel or your home country.
What Does Cross-Border Estate Planning Cost?
It is custom work, quoted at the consult, because it depends on your assets, where you and your spouse are citizens and domiciled, and what is at stake. Given that the alternative can be a 40% tax or a frozen US account your family cannot reach, the planning usually pays for itself many times over. The 30-minute consult is free, and we will tell you honestly what your situation needs.
Common Situations
The mixed-citizenship couple. A US citizen is married to a spouse who never naturalized. Their advisor assumed the usual unlimited spousal transfer applied; it did not, and a large tax loomed at the first death. A QDOT preserved the marital deduction and deferred the tax.
The foreign parent with a Florida condo. A non-resident, non-citizen parent owns a $1.5 million Naples condo. With only a $60,000 exemption on US-situs assets, the family faced a steep US estate tax. Restructuring how the property was held reduced the exposure substantially.
The US-Israel family. A couple split between Tel Aviv and the US holds a US IRA and brokerage. With no US-Israel treaty and no US power of attorney, a health crisis would have frozen the US accounts. We put the US documents and structure in place and coordinated with their Israeli counsel.
Sources of Law
- IRC §2056A (qualified domestic trust / QDOT, preserving the marital deduction for a non-citizen spouse); §§2101 to 2106 (non-resident, non-citizen US-situs estate tax; the §2102(b) unified credit shelters the first $60,000); §2523(i) (annual exclusion for gifts to a non-citizen spouse, $194,000 in 2026, indexed). (retrieved 2026-06-10)
- IRS Form 706-NA: US estate-tax return for non-resident, non-citizen decedents with US-situs assets over the filing threshold. The US has estate/gift tax treaties with a limited set of countries; Israel is not among them.
- Florida imposes no state income or estate tax; Florida Trust Code, Fla. Stat. ch. 736.
Updated on June 10, 2026. Reviewed by Kevin D. Klagge, Esq., Fla. Bar No. 99502. General information about US and Florida law, not legal or tax advice, and no attorney-client relationship is created. Cross-border outcomes depend on citizenship, domicile, treaties, and federal law that may change, and require coordination with counsel in your home country; nothing here is a guarantee. Do not send confidential information until we have agreed to represent you.