Among the efforts under way to help families of victims killed in the Sept. 11 attacks is a bill in Congress that would reduce the estate-tax burden for surviving spouses.
The legislation, passed by the House and awaiting Senate approval, would make families of the victims eligible for tax breaks, usually reserved for overseas wartime casualties.
Unclear, though, is how the legislation would help surviving spouses who are not citizens or permanent residents.
Among the grieving widows is Lucy Thompson, whose husband, Ian, a trader for Euro Brokers, was on the 84th floor of the south tower when a hijacked airliner crashed into the building.
Because Thompson, a British mother with two daughters to raise on her own, is not a citizen or resident, she does not get a marital exemption on the tax she has to pay on her husband’s estate.
As a result, she is forced to pay the tax up front because of legal concerns that foreign surviving spouses might take the family assets and move back overseas, leaving the government with nothing to collect.
“I think there will be some movement with the victims bill moving the way it is,” said a staffer on the Senate Finance Committee.
“The senators are very focused on Sept. 11 not being a taxable event. The staff has been directed to try to figure out how to alleviate the burden as much as possible.”
Thompson could not be reached for comment. The American Bar Association is working to secure pro bono assistance on immigration and taxation issues for families affected by the tragedy.