New York Warning: Indian Investors Face High US Estate Tax Risks on Stocks -

Read Time:1 Minute, 5 Second

As Indian investors increasingly invest in US stocks, a significant tax risk has emerged. Samir Arora, a well-known expert in the field, highlights concerns regarding the US estate tax that applies to non-US investors.

Key Points About US Estate Tax for Indian Investors

The estate tax exemption for non-US persons is extremely low, set at only $60,000.
If an Indian investor passes away owning US assets exceeding this limit, their heirs may be liable to pay up to 40% in estate taxes.
This high tax burden can significantly reduce the inheritance value of US stocks or property.

Risks and Recommendations

Many Indian investors remain unaware of these estate tax implications when investing in the US market. Arora advises the following steps:

Advertisements

Thoroughly understand the US estate tax rules applicable to non-US persons.
Implement estate planning strategies to minimize potential tax liabilities.
Regularly review investment portfolios with a focus on tax exposure.
Seek professional advice to manage and mitigate risks.

The US estate tax laws are stringent and can have substantial financial effects on foreign investors and their families. It is crucial for Indian investors to take proactive measures to protect their assets and ensure a smoother inheritance process.