US Estate Tax Alert: Samir Arora Warns Indian Investors About Big Risks in US Stocks -

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Financial expert Samir Arora has issued an important warning for Indian investors involved in US stocks regarding the US estate tax risks for non-US persons. The key concern lies in the estate tax exemption limit, which for non-resident aliens is only $60,000. This threshold is substantially lower than that for US citizens and residents.

This means that if an Indian investor passes away owning US assets exceeding this amount, their heirs could be liable to pay an estate tax as high as 40% on the value of the inherited property. Such a tax can significantly dent the value of US-based investments passed down to heirs.

Important Points for Indian Investors

The critical estate tax exemption for non-resident aliens is limited to $60,000.
Heirs may face up to 40% estate tax on US assets beyond this exemption.
This can reduce the value of inherited investments substantially.

Recommendations from Samir Arora

To manage this risk, Indian investors are advised to:

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Engage in proper estate planning to protect inherited wealth.
Consult with financial experts familiar with cross-border tax issues.
Consider strategies to minimize the impact of the US estate tax.
Stay informed about tax regulations affecting international investments.

The US estate tax is often a lesser known but crucial factor for international investors. Samir Arora emphasizes the need for awareness to avoid unexpected financial burdens on heirs. Indian investors should approach US stock investments with a clear understanding of these risks and plan accordingly.

For continued updates on this topic, stay tuned to Questiqa USA.