US Estate Tax and Situs Assets for Expats
US estate tax can matter even when someone does not live in the United States.
It can affect:
US citizens living abroad
green card holders
former US residents
non-US spouses
British expats with US investments
non-US persons with US property
foreign investors with US brokerage accounts
mixed-nationality couples
internationally mobile families
beneficiaries living in different countries
families with US and non-US assets
The key issue is whether the estate includes US situs assets, worldwide assets, or both.
You may need to review:
US citizenship
green card status
estate tax domicile
US situs assets
US shares
US ETFs
US mutual funds
US brokerage accounts
US real estate
US bank accounts
US retirement accounts
life insurance
trusts
non-US spouse planning
beneficiary forms
estate tax treaties
local inheritance tax
wills and probate
currency
future residence
The question is not only:
Do I live in the US?
The better question is:
Could the assets I own still bring my estate within the US estate tax system?
What are US situs assets?
US situs assets are assets treated as situated in the United States for US estate tax purposes.
They can matter differently depending on whether the person is:
- a US citizen
- a green card holder
- domiciled in the United States for estate tax purposes
- a nonresident who is not a US citizen
- a former US resident
- married to a US person
- married to a non-US person
- holding assets through a trust, company or nominee
- covered by an estate tax treaty
For US citizens and US estate tax residents, worldwide assets may be relevant to US estate tax planning.
For nonresident non-citizens, the focus is usually on US-situated property.
The IRS says estate tax for nonresidents who are not US citizens applies to transfers of US-situated property, which may include both tangible and intangible assets owned at death.
The IRS also says an executor for a nonresident who is not a US citizen must file Form 706-NA if the fair market value at death of the decedent’s US-situated assets exceeds $60,000.
That is why US situs asset planning can be important even for people who are not American and do not live in the United States.
What US estate tax issue do you need to review?
Americans abroad
US citizens abroad should review worldwide estate exposure, foreign assets, non-US spouses, beneficiaries, trusts and future residence.
Non-US spouse planning
A US citizen married to a non-US spouse may need specific estate, gift, trust, beneficiary and ownership planning.
Foreign trusts and gifts
Foreign trusts, gifts and inheritances can create reporting, tax and estate planning issues for US-connected families.
US property planning
Non-US persons with US property should review estate tax, ownership, succession, probate, tax and liquidity.
US situs assets can matter for Americans abroad and non-US investors.
Who this page is for
Americans abroad, green card holders, non-US persons with US assets, British expats with US investments, mixed-nationality couples and international families.
Main assets to review
US real estate, US shares, US funds, US brokerage accounts, US retirement accounts, US business interests, life insurance, trusts and jointly owned assets.
Main planning risks
Unexpected US estate tax, wrong ownership structure, non-US spouse complications, outdated beneficiaries, estate tax treaty mistakes, probate delays and forced asset sales.
Common trigger points
Buying US assets, opening a US brokerage account, marrying a US or non-US spouse, inheriting US assets, moving country, retirement, illness or estate planning review.
Planning outcome
A clearer view of which US assets may create estate tax exposure and how ownership, beneficiaries, liquidity, wills and family planning should be reviewed.
US estate tax is not only about where you live
Many expats assume US estate tax only matters to people who live in America.
That can be wrong.
US estate tax can also matter because of what someone owns.
This is especially important for internationally mobile families because they may hold assets across several countries.
For example:
- a British expat may own US shares through an investment platform
- a non-US spouse may inherit US assets
- a US citizen abroad may own worldwide assets
- a family may own US real estate
- a trust may hold US investments
- a non-US person may own US ETFs
- an estate may include US brokerage assets
- beneficiaries may live in the US, UK, Europe, UAE or elsewhere
The planning can depend on several factors:
- citizenship
- domicile
- residence
- asset type
- ownership structure
- treaty position
- spouse citizenship
- beneficiary location
- estate documents
- account titling
- liquidity
- local inheritance tax
- future residence
This is why US situs asset planning should not be reviewed in isolation.
It should be connected to wills, beneficiaries, trust planning, investment structure, property ownership, tax advice and family succession.
The aim is not to avoid US assets automatically.
The aim is to hold them knowingly, with the right structure, documentation and liquidity plan.
Documents to gather before a US estate tax and situs asset review
Citizenship and residence details
Confirm US citizenship, green card status, dual nationality, current residence, tax residence, domicile history and future residence plans.
US asset schedule
List US real estate, US shares, US ETFs, US mutual funds, US brokerage accounts, US bank accounts, US retirement accounts and US business interests.
Non-US asset schedule
List foreign property, foreign pensions, non-US investment accounts, bank accounts, business interests, trusts, insurance policies and family wealth structures.
Ownership details
Confirm whether assets are owned individually, jointly, through a spouse, company, trust, foundation, nominee or other structure.
Beneficiary forms
Gather beneficiary nominations for 401(k), IRA, Roth IRA, TSP, pensions, life insurance, employer benefits and transfer-on-death accounts.
Estate planning documents
Collect wills, codicils, trust documents, powers of attorney, guardianship documents, letters of wishes and local succession planning documents.
Non-US spouse details
Confirm spouse citizenship, residence, tax status, asset ownership, marital property arrangements and inheritance intentions.
Trust and company documents
Gather trust deeds, company documents, shareholder registers, partnership agreements, beneficiary statements and control arrangements.
Tax and treaty advice
Gather US tax advice, local tax advice, estate tax advice, gift tax advice, treaty analysis and prior correspondence with lawyers or accountants.
Liquidity and cash flow
Review whether the estate has enough liquidity to pay tax, legal costs, probate costs, debts and family income needs without forced asset sales.
These related pages cover the main planning issues that sit around US estate tax and situs assets.
Estate tax abroad
Review how US estate tax and gift tax planning may still affect Americans living outside the United States.
Cross-border wills
Review whether wills, guardianship, beneficiary forms, property ownership and estate documents work across countries.
Non-US spouse planning
A US citizen married to a non-US spouse may need specific estate, gift, tax, trust and beneficiary planning.
Foreign real estate
Foreign property should be reviewed alongside estate tax, ownership, inheritance, currency and family succession planning.
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View Financial PlanningRelated Links
- Financial planning for Americans abroad
- Financial planning for foreign nationals living in the US
- US retirement accounts for expats
- 401(k) planning for expats
- IRA and Roth IRA planning for expats
- Retirement planning for Americans abroad
- Investment planning for Americans abroad
- Former US residents with US retirement accounts
- Book a call with Josh Clancey
Important information
This page is for general information only and does not constitute personalised financial, tax, legal, estate planning, trust, gift tax, inheritance tax, probate, investment, pension transfer, US tax, local tax, situs asset or currency advice.
US estate tax, US situs assets, nonresident non-citizen estate tax, Form 706, Form 706-NA, domicile, citizenship, green card status, US property, US shares, US brokerage accounts, US retirement accounts, trusts, companies, non-US spouses, estate tax treaties, local inheritance tax, wills, probate, beneficiary forms, liquidity, currency and future residence depend on personal circumstances and may change.
US tax advice should be taken from a suitably qualified US tax adviser or CPA. Estate planning, legal, probate, trust and local tax advice should also be taken from appropriately qualified advisers in each relevant jurisdiction.
Financial planning should be coordinated with legal, tax, trust, estate, pension, investment and insurance advice where appropriate.
Do not rely on general information when preparing wills, trusts, tax filings, beneficiary forms or estate planning documents.
Investing involves risk. Pension, retirement account, property and investment values can fall as well as rise, and you may get back less than you invest.
Currency movements can affect the value of estates, gifts, inheritances, property, pensions, investments and future spending.
