Investing as a non-US citizen - inheritance tax

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spqjh

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spqjh
Jul 31, 2018 4 Comments

Any recommendations on the best broker for non-US citizens that live outside the US? I’m trying to help my parents invest. Trying to minimize taxes and avoid inheritance issues when they pass away :(.

I’ve heard of Interactive Brokers, and Ireland-domiciled ETFs. If they hold American stocks with Interactive Brokers or a non-US based broker, would the 40% inheritance tax still apply?

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  • Microsoft / Eng
    Tier 1

    Go to company page Microsoft Eng

     Tier 1
    If you hold US equities with a broker outside the US, and are not tax resident in the US, and are not a US citizen / permanent resident, then you will not be taxed by the US.

    That said, any dividends (from US companies) you earn are taxed (by the US) before they are given out to anyone
    Jul 31, 2018 0
  • New
    DuQvV7

    New

    BIO
    mehy
     DuQvV7
    If the account is under $5.5m this is not an issue that impacts you.
    Aug 1, 2018 2
    • Google
      spqjh

      Go to company page Google

      spqjh
      OP
      Of course it is :). My parents are non-us citizens / non-resident aliens for tax purposes (they don’t live in the US). The 5.5M exemption does not apply - tax law is ridiculous. 🤷‍♂️
      Aug 1, 2018
    • New
      DuQvV7

      New

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      mehy
       DuQvV7
      Create an investment club account with your folks. Whoever is left alive continues to manage the account till one person owns it.

      The above certainly works for US citizens. Talk to a tax attorney for non-US citizens. I don’t know enough about that.

      Cheers
      Aug 1, 2018