In the world of gift and estate tax, for the tax year 2023, a U.S. citizen and/or resident decedent currently receives a $12.92 million lifetime exemption from tax on their worldwide assets, while a non-U.S. citizen who is not a resident, although only applicable to certain U.S. assets, receives a mere $60,000 lifetime exemption. As the federal gift and estate tax rate can reach up to 40%, non-U.S. resident decedents may be exposed to significant tax liability. Often times, a foreign taxpayer is unaware of this potential tax bill. For individuals who are not citizens of the U.S. but have other considerable ties, determining whether they are eligible to receive a lifetime exemption of almost $13 million or $60,000 depends upon their residency, and residency in this case is ultimately established by domicile. Domicile is dependent on a number of factors best reviewed by someone with expertise in international tax laws and requirements.

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