Navigating Estate and Gift Tax Issues for Foreign Investors

Foreign investors must consider special U.S. estate tax rules applicable to nonresident aliens to minimize potential adverse tax implications stemming from their investments in U.S. assets. Estate planners and advisers must understand complex U.S. estate and gift tax rules impacting foreign investors and implement effective planning techniques.

Under U.S. law, transfers by gift, bequest, or inheritance are subject to an estate tax. For those classified as nonresident aliens, property situated in the U.S. at their time of death is also subject to the estate tax. In addition, the One Big Beautiful Bill Act (OBBBA) contains certain provisions that must be considered. Estate planners and tax advisers must identify tax opportunities and risks for these clients, implement strategies to mitigate estate tax exposure, and anticipate other estate planning issues that arise when non-U.S. citizens invest in U.S. assets.

Listen as our panel of estate planning attorneys experienced in international issues discusses the tax rules and treaty provisions impacting estate planning associated with nonresident investors and strategies to minimize gift and estate tax taxation.