Inheritance and US based shares

B

Billy Baltic

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Through working for multinationals I have accumulated a basket of US based shares.

I'm treating these as a long term investment and therefore may become some element of an inheritance.

Is there an added complication from these being US shares in the case of inheritance (US inheritance tax) or are they treated the same as an Irish based asset?

Thanks in advance
 
As far as I am aware, you can leave $60,000 tax free, the rest is subject to inheritance tax in the US.

If you look into this a bit further, you will see that in a lot of cases, this is ignored in a lot of cases and the money is taken out of the US without paying the IRS the inheritance tax. So it will be an issue for your executors and whether they want to pay Uncle Sam or not.



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Wow! I thought there might have been some tax and threshold but not this punitive.
One of the posts above indicates that many people choose not to pay. Is this route even possible if the shares are held with a stock transfer company or will they take the tax at source?
 
Gordon Gekko said:
If you hold the shares with a non-US institution, you can get around the US tax issue.
Click to expand...

Thanks for the response.
Is it that keeping the shares with a non-US institution removes the liability or is it that its easier / possible to avoid a liability?
The intention is to avoid tax but not evade it.
 
Gordon Gekko said:
If you hold the shares with a non-US institution, you can get around the US tax issue.
Click to expand...
A question. If the shares are held in a nominee a/c in the US is there still a tax issue on inheritance, i.e. the shares are not held in the name of the deceased?
 
I have considerable no of shares in two U.S companies and those are administered from U.S. by Computershare. I resigned myself to be stuck with the fact that a lump of tax would be deducted in US after my demise if I hadn't disposed of them beforehand.

However, I was reading an article which stated that you will be subject to this tax unless " you structure your account through use of a non U.S. company, partnership or trust and/or invocation of treaty benefits."

Perhaps someone might give a analysis of these options and how/if I could utilise any of them to avoid the tax in the future
 
It's discussed further here

Key Post - Be careful if you hold more than $60,000 in US equities

Of course what most people don't appreciate is that if you are not a US citizen or US resident and you hold more than $60,000 in US equities then US estate taxes apply to transfers between spouses on death. That's right if you die your spouse or civil partner would have to pay US Estate taxes...
www.askaboutmoney.com

A lot of Irish people were told by accountants and bankers that it was ok to claim to be a non-resident to open a DIRT-free deposit account. They ended up being named and shamed as tax evaders.

If American tax law requires you to pay inheritance tax on shares in excess of $60,000 , it is tax evasion not to do so. Your executors may well get away with it. But if I were the executor to an estate I would certainly pay the tax. I presume that I could be held personally responsible otherwise.

Brendan
 
So correct me if i am wrong. if you sell the US shares during tour lifetime, then you are subject 33% CGT on the gain less allowances.

If you hold onto the shares then the balance above $60,000 is subject to 40% tax, no allowances.

if you intended for your wife to be beneficiary, could you put share account in joint names and avoid CGT (until shares sold) and inheritance tax?
 
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