Many people invest in US stocks and/or real estate and just look at the immediate tax consequences.
A little-known fact is that the US has some extremely high estate / death / inheritance taxes on non-US people (aka non resident aliens / NRAs)
To be clear, this email is NOT tax advice as the topic is too complex and I am not a tax professional, but I will highlight a few points based on my (potentially flawed) understanding:
- When you die, US real estate and US stocks worth above a combined $60,000 will get taxed at a progressive rate from 18% to 40%(!)
- The definition of US stocks is stocks listed in the US. So this also applies to NYSE listed stocks held in a brokerage account in Europe or Singapore for example.
- Non-US stocks, held in a US brokerage account do not count. But cash held in a US brokerage account does.
- There is a network of about 15 estate tax treaties that the US has signed with other countries which help mitigate this tax, but mostly with large Western countries.
My key point is that you should speak with an accredited tax professional if you have significant US assets, and are getting a little old, frail, or just want very good forward planning.
I did a short video on the topic when I was in Cologne. You can watch it here.
Here are some resources for your research:
- Estate tax treaties: https://www.irs.gov/businesses/small-businesses-self-employed/estate-gift-tax-treaties-international
- Morgan Stanley report: https://advisor.morganstanley.com/michelle.ward/documents/field/w/wa/ward-sofia-michelle/Taxation_of_Non_Resident_Aliens__NRAs_.pdf
- Tax rates above $60,000 https://irc.bloombergtax.com/public/uscode/doc/irc/section_2001
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The Wandering Investor is on new platforms
Seeing how easily people get booted off platforms for whatever reasons, I decided to upload my videos on both Odysee and Rumble. I encourage you to try these new platforms. Sure, they are not as convenient as Youtube, but we all have to start somewhere.
Competition is healthy.
To a World of Opportunities,
The Wandering Investor
If you want to discuss your internationalization and diversification plans, book a consulting session* or send me an email.
*a consulting session is a discussion about your portfolio and objectives. It does not constitute legal, financial, tax or investment advice.