Inheritance tax on US securities

[julienb54]

Good morning,

This is my first post on this site. Thanks for the work done and the articles. It helps me a lot to know how to invest.

I have a question regarding inheritance tax (and taxes) for US securities. From what I have read on the web, the United States applies the Estate tax (https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States) and the Non-residents section indicates that there is a tax exemption in the case of a fortune below 60,000$. On the other hand, above that, inheritance taxes would apply on shares considered to be in the United States up to a maximum of 40% of the fortune.

Does anyone have more information on this?

THANKS,

Julian

[Jerome]

No information on this subject but for non-residents I don't really see the purpose of this rule... You just have to inform your spouse of the accesses or give the signature and if necessary he transfers the assets without informing of the death... Or maybe there is something I'm missing...

[julienb54]

Ok. Thanks for your feedback.

[dividinde]

Yes, that is perfectly correct and it is one more reason to avoid US stocks: it is a real poisoned chalice for heirs (only concerns amounts over 60,000 USD and stocks, not ADRs):

https://www.nzz.ch/finanzen/bitte-keine-us-aktien-vom-erbonkel-1.18379127

 

[Jerome]

I misread... I thought it was a US deposit... But we are talking about US shares...

I assume that if we separate the assets into several accounts it doesn't change anything...

[dividinde]

This does not only concern stocks, but also US real estate, US bonds and investment funds headquartered in the US!

Given the legal flexibility that Americans are well known for, I imagine that spreading your assets across multiple accounts doesn't change anything... except perhaps risking a lawsuit and an additional fine. 😉

[julienb54]

Thanks for the info. Ok, I'll make sure to stay below oO.

Julian

[Jerome]

I was looking for an excuse to part with some overvalued stocks…;-)

[Author]

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