US estate tax

Hi valuebuddies, wonder if anyone is familiar with US estate tax...are non resident aliens (e.g.Singaporeans) holding US listed shares of US incorporated companies on their personal account subjected to US estate tax? As far as i'm aware, there's exemption only on the first usd 60000. Would be glad if forummers could shed more light on this...

(25-03-2012, 03:45 PM)valuehunter Wrote: Hi valuebuddies, wonder if anyone is familiar with US estate tax...are non resident aliens (e.g.Singaporeans) holding US listed shares of US incorporated companies on their personal account subjected to US estate tax? As far as i'm aware, there's exemption only on the first usd 60000. Would be glad if forummers could shed more light on this...

Do you mean inheritance tax ? Exemption reduced to US $1 Mil

Is this link any help ?

http://wills.about.com/od/understandinge...xchart.htm

From what i know, the tax applies to non resident aliens as well. Which is why the correct way to own us equities are a) thru a trust non us domiciled or b) adrs listed say in singapore.

(30-11-2012, 07:04 PM)godjira1 Wrote: From what i know, the tax applies to non resident aliens as well. Which is why the correct way to own us equities are a) thru a trust non us domiciled or b) adrs listed say in singapore.

Thanks for the reply Soros and Godjira1. I think the 1 million bucks exemption refers to US citizens. Non resident aliens exemption only 60k.

Just wondering if purchasing US shares through a local brokerage firm vs. through a US brokerage firm makes a difference in terms of estate tax (or inheritance tax) liabilities of a non resident alien. Have being trying to educate myself here and learn more about estate taxes. Would be grateful if valuebuddies with knowledge in this area could share!

i am also at a loss in regards to the estate taxes despite some research.

The solution is, I told my family that if that i am dying, please liquidate all my US & UK stocks first, regardless of in the black or in the red, can always buy it again another time

The best way to avoid inheritance tax is to sell all your US and UK stocks and put the proceeds money into red lai-see packets and give away at next Chinese Lunar New Year to your family members and one packet for me ( Joke !)

The UK ( HMRC) only applies tax on "income" gained by non-residents who are not liable for CGT and IHT . If you buy a flat in London, you submit annual tax return and pay tax on the rental profit surplus ( expenses such as letting agent fee, building survice charge, repairs , loan interest are deductable). For non-residents only, after you sell the flat, there is no capital gains tax to pay and if after you die. your heirs have no IHT to pay .

For US, their tax net is worldwide and seems more complicated. Can Valuehunter say where he has been informed 60K exemption applies for non-residents?

Here's a weblink to news report on possible change to US estate tax rates ( note-it mentions estate passing to spouse is not taxed )

http://uk.reuters.com/article/2012/11/30...9I20121130

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I had assumed you guys are all Singaporean passport holders.

If you are UK passport holder and therefore are a British citizen, then you may be liable to IHT and my red lai-see packet suggestion may be the best solution.

http://www.hmrc.gov.uk/cto/customerguide/page20.htm

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Here a website on explaining US tax liablity for non-US Citizens :

http://renunciationguide.com/Residents-N...izens.html

For those who have a US brokerage account and are worried that the US government may gobble up their assets should something happen to them, they can create joint accounts with their spouses. If something happens to them, at least the assets still remains with the spouse. But pray hard that disaster does not hit both husband and wife.

(02-12-2012, 01:49 PM)soros Wrote: For US, their tax net is worldwide and seems more complicated. Can Valuehunter say where he has been informed 60K exemption applies for non-residents?

Here's a weblink to news report on possible change to US estate tax rates ( note-it mentions estate passing to spouse is not taxed )

http://uk.reuters.com/article/2012/11/30...9I20121130

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I had assumed you guys are all Singaporean passport holders.

If you are UK passport holder and therefore are a British citizen, then you may be liable to IHT and my red lai-see packet suggestion may be the best solution.

http://www.hmrc.gov.uk/cto/customerguide/page20.htm

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Here a website on explaining US tax liablity for non-US Citizens :

http://renunciationguide.com/Residents-N...izens.html

The information can be gleaned from the following website: http://www.irs.gov/uac/SOI-Tax-Stats-Non...y-Metadata

At least this is how i interpret it.... Please do correct me if i'm mistaken.