Certain deceased nonresidents who were not citizens of the United States are subject to U.S. estate taxation with respect to their U.S.-situated assets. For estate tax purposes, a citizen of a U.S. possession is not a U.S. citizen.
U.S.-situated assets that are subject to estate tax include, for example:
- Real estate located in the U.S.,
- Tangible personal property (excluding some art), and
- Stock of corporations organized in or under U.S. law, even if the nonresident held the certificates abroad or registered the certificates in the name of a nominee.
When these assets cross international borders, it can become even more challenging due to different international tax laws and regulations. International trust and estate tax planning involve setting up trusts and other estate planning vehicles that allow individuals to transfer their assets while minimizing tax liability. One common tool used in international estate planning is the use of foreign trusts.
Foreign trusts are often used to hold and manage assets outside of an individual’s home country, providing benefits such as international tax minimization and asset protection.
Estate matters affect everyone. By taking proactive steps today, you can ease the way for your heirs during a very difficult time.
Finberg Firm can work with your legal counsel to help you to structure your estate and trusts to minimize taxes and ensure the smooth transition of your assets to your heirs. We are available to handle all estate and trust tax-related matters.
