Estate Tax Residency Rules Simplified

Offshore Tax with HTJ.tax · Apr 25, 2026 · 1m

When it comes to U.S. estate tax, residency does not follow the same rules as income tax. This is one of the most common—and costly—areas of confusion.⚖️ 1️⃣ The Key Concept: DomicileUnder the Internal Revenue Code:👉 Estate tax residency is based on domicile, not income tax residency.🧠 What Is Domicile?Domicile requires:• Physical presence in the United States, and • Intent to remain indefinitely👉 Both elements must be present.🔍 2️⃣ A Facts-and-Circumstances TestThere is no single rule or day-count test.Instead, the IRS looks at the totality of the situation, including:🏠 Personal Ties• Where…