I’ve carefully reviewed an excellent post from 2020 about US Estate Taxes for non-US Persons on Assets (such as VT) on Mustachian Post. As someone who’s a bit older and closer to retirement than the average, this topic has become increasingly important to me. However, since the post is somewhat dated, I have a few questions that I hope you can help clarify:
Your insights are welcome.
- Estate Tax Threshold: After reading the post multiple times, I’m still not entirely clear on whether the estate tax threshold is an “absolute” USD 810,600 or if it’s 7% of the overall fortune until it reaches USD 810,600. Perhaps I’m not just old but also a slow learner!
- Tax Treaty Changes: Has the tax treaty changed since the original post? Unfortunately, the link provided in the post is outdated.
- US Domiciled ETFs and Assets: I understand that the limit includes all US-domiciled ETFs and assets, with domicile being the trigger for counting them as US assets.
- Investment Strategy: Assuming someone has more than USD 810,000 to invest and is close to retirement, would it be best to consider investing in an ETF or assets with a non-USA domicile, taking into account the estate tax?
Your insights are welcome.