US estate tax: the exposure many non-US investors never see coming

Investors often assess a holding by return, currency and income tax. Death can introduce a separate analysis. The location and legal character of an asset may matter even where the investor is neither a US citizen nor resident.

Start with the asset, not the account

An account held through a non-US platform can still contain assets whose estate-tax character requires a US analysis. A useful review therefore looks through the wrapper to identify what is legally owned, where it may be situated and who owns it.

flowchart LR
  A[Investor] --> B{What is legally owned?}
  B --> C[Asset location]
  B --> D[Ownership structure]
  C --> E[Treaty and tax analysis]
  D --> E
  E --> F[Liquidity and administration plan]

Exposure changes with the portfolio

Questions worth taking to an adviser

1. Which holdings may be treated as US-situs assets?
2. What is the investor’s domicile position and treaty position?
3. Who legally owns each asset?
4. How would the estate fund tax, professional fees and administration costs?
5. What would executors need before a custodian can release assets?

The purpose of the review is not to predict one number. It is to prevent an avoidable surprise.

Sources and updating

Use current primary guidance and jurisdiction-specific professional advice. Law, thresholds and treaty application can change; verify before acting.