Foreign Nationals Abroad with US Assets
US securities, US real estate and US accounts held from abroad remain within reach of the US estate tax, and an heir in the United States brings US reporting into a foreign estate. The applicable convention decides most of the outcome.
Law stated as of October 2026
In brief.
- Shares of US corporations, US real estate and tangible property located in the United States are within the estate tax of a nonresident who is not a citizen. Deposits in US banks that are not connected with a US business generally are not.
- Without a convention, a credit of USD 13,000 covers the tax on the first USD 60,000 of US-situs property; above that, the rates reach 40 percent.
- Under the six domicile-type conventions the United States may in general tax only real property and business property situated here. The situs-type conventions keep the US rules and grant a pro rata credit.
- A sale of US real property by a foreign person is subject to FIRPTA withholding, as a rule 15 percent of the amount realized.
- A US person who receives a bequest from a foreign estate above the reporting threshold reports it on Form 3520.
A Guide for Financial Advisors. About 540 pages. To be published in mid-December 2026; USD 225.
Pre-orderFamilies in Germany find this material in German on Vermoegen-USA.com, families in France and other French-speaking countries in French on patrimoine-americain.com.
What is held here, and what follows from it
US securities
Withholding on dividends, the treaty rate, the estate tax on shares and the release of the account after a death.
US real estate
Purchase and holding structures, rental income, the sale under FIRPTA and the property in the estate.
US bank and brokerage accounts
Deposits, cash held with a broker, joint accounts and beneficiary designations.
Art and collections
Works kept in the United States, loans to museums, valuation and export.
US retirement accounts
Distributions to a payee abroad, the treaty pension article and the account in the estate.
Companies and blocker structures
Holding US assets through a foreign corporation, and the income tax cost of doing so.
The convention decides most of the outcome
The firm treats the convention as the rule. Where none applies, the statutory regime applies without modification.
When the family abroad has children or grandchildren here
An heir in the United States receives a bequest or a trust distribution from abroad, reports it, and may hold inherited foreign funds or interests that the US rules treat harshly. The estate plan made abroad can take this into account before the death.
Material for foreign nationals abroad
The filter opens with foreign nationals living abroad selected.
A short list of assets is enough to begin
The country of residence and citizenship, the US assets with approximate values, and the heirs. The firm replies with the questions that need an answer and how it would charge for the work.
