Plan Ahead to Avoid or Minimize US Estate Tax

By: Jason Palmisano If you are not a US resident or a US citizen and are considering buying assets in the US, there are ways to avoid or minimize US estate tax on those assets. Here are some things to consider:

  • The US federal estate tax applies to US citizens, individuals considered to be US “residents” subject to US estate tax, and possibly to individuals who are not a US citizen or a US resident.
  • An individual will be considered a US resident subject to US estate tax if the individual is considered domiciled in the US at the time of death, which will be determined based on whether the individual has or had a physical presence in the US and the individual’s intent to remain in the US.
  • Please note, the US income tax rules for determining residency are different from the US estate tax rules for determining residency.
  • If an individual is not a US citizen or deemed to be a US resident for US estate tax purposes, then that individual may still be subject to US estate tax if the individual owns assets that are determined to be situated in the US at the time of the individuals death.
  • Such assets include US real estate, stocks in US corporations, and tangible personal property.

For tips on how to avoid or minimize US estate tax, click on the video below:

Jason PJason Palmisano offers advice about estate planning for non-U.S. citizens

If you have any questions about US estate tax, please contact Jason Palmisano, Julie Frey  or any member of the Estate Planning Group.