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Effective Estate Tax Planning for holders of US Company Shares
Technical Guides • Effective Estate Tax Planning for holders of US Company Shares
Effective Estate Tax Planning for holders of US Company Shares
Discover how non-US residents with US company shares can protect their beneficiaries from unnecessary estate tax.
Are Your US Shares Exposing Your Estate to a 40% Tax Hit?
If you're part of a US company share scheme or hold US-listed company stock, you could be liable for significant US Estate Tax — even if you don’t live in the US.
Holding US shares might seem like a smart investment move. But if you're a non-US resident or passport holder, your estate could face a 40% tax on those assets upon your death. This guide explains the implications of US Estate Tax for internationally mobile investors and explores effective strategies to mitigate the liability — legally and efficiently.
What You’ll Learn
- What qualifies as a US situs asset — and why it matters
- The difference between residency and domicile for tax purposes
- Why your global estate plan needs to account for US tax exposure
- What practical steps you can take to remove US shares from your taxable estate
- Where tax treaties do — and don’t — help
Who This Is For
This guide is ideal for:
- Non-US residents with US-listed company shares
- Participants in US company share schemes
- Expatriates and globally mobile professionals
- Beneficiaries or executors managing cross-border estates
Frequently Asked Questions
Yes.
You are currently liable for US Estate Tax on death, regardless of whether you reside within or outside the United States.
You are liable to 40% US estate tax on those shareholdings.
Over and above the 60,000 USD tax-free allowance threshold, a tax charge will apply to the value of 40% of the shareholding – meaning that essentially your beneficiaries will receive significantly less than you had probably intended.
Investors with assets based in a different jurisdiction from where they are resident or domiciled can sometimes be unaware of the potential tax consequences of doing so. This could include exposure to inheritance and estate taxes as well as probate requirements in the jurisdiction where those assets are situated. One such country is the United States.
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