US situs estate tax for non-US persons

Where an asset belongs can differ from where you live

An international portfolio may include US assets even when its owner lives elsewhere. Understanding the issuer and legal ownership helps identify whether US estate rules need a closer look.

Residence and asset location are different questions

A person can live in India, the GCC, Europe or Asia and still directly own assets the US treats as situated in the United States. That is why cross-border estate planning starts with the legal nature and location of the asset, not simply the address on the investor's passport or bank statement.

What can be US-situated?

IRS guidance includes US real estate, tangible property in the US and certain intangible assets. Shares of corporations organised under US law are a particularly important example for international investors.

The $60,000 figure is a filing threshold, not a flat allowance story

The IRS states that Form 706-NA can be required when relevant US-situated assets plus specified adjusted taxable gifts exceed a $60,000 filing threshold. The eventual tax computation is more complex, and estate-tax treaties can materially change the result for some nationalities.

Common ways accidental exposure arises

• Holding individual US company shares directly.
• Employer shares received through an employee share plan.
• US real property.
• Investment structures that hold assets in a way the investor assumes is “international” without checking legal ownership or situs.

• Are you a US citizen or treated as US domiciled?
• Do you directly own shares in US corporations?
• Do you have vested employer shares?
• Do you own US property or business interests?
• Is an estate-tax treaty potentially relevant?
• How are your investments legally owned?

Start with an inventory, not a headline rate

A useful first pass lists the issuer and type of each holding, the legal owner and the supporting account records. A broker’s location or the currency displayed on a statement does not, by itself, resolve the asset’s estate-tax treatment. Citizenship, domicile for estate-tax purposes and treaty eligibility require their own analysis.

The next practical question is who could administer the assets if the owner died. Executors may need statements, valuations, ownership records and professional support. Keep an accessible inventory and an appropriate secure process for records; never share passwords in a meeting request.

Connect ownership with the wider family plan