Planning Can Ease Burden of US Cross-Border Estate Tax Rules and Reporting Requirements

March 09, 2011
While recent changes to the U.S. estate tax―a tax on assets transferred at death―have reduced or eliminated the financial burden on U.S. citizens and domiciliaries, the rules applying to persons who are neither U.S. citizens nor domiciled in the United States remain unchanged and can exact a heavy toll, particularly on residents of countries with which the United States does not have a transfer tax treaty. This update highlights the risks for those transferring assets into the United States as well as basic estate planning techniques that, if done in advance, can minimize the impact of the estate tax on foreign nationals living in non-treaty countries, including Belgium, China, Luxembourg and Russia.