IBKR recently opened a Singapore office with a subsidiary registered in Singapore and regulated by Singapore financial regulator. My question is ... Is the cash in IBKR SG (Singapore) account subjected to U.S estate tax for Singaporean clients of IBKR? This is a matter of grave concern for clients with at least 7-digit sum in their IBKR SG account. I assume that the cash shouldn't be subjected to U.S estate tax since the cash is deposited with a Singapore-registered subsidiary. Can IB representatives confirm my assumption? Can an IB representative answer this important question? External tax consultants cannot answer this question because they do not know how IBKR structure the SG account.
No. Singaporean. For U.S citizens, I'm sure they have to pay estate tax regardless of whatever account wherever they are unless they quit U.S which many are unwilling to do. It's a great country.
Indeed, the IRS will follow US citizens independently of where they are. You are not a US citizen. Why would you be worried about paying US estate tax?
Because IBKR is a US broker and is subjected to U.S law. If your IRAS says tax foreigners' estate, then US companies have to follow the law. This doesn't affect only IBKR but ALL U.S brokerages. This is something that foreigners need to be aware.
If the US government will adopt such a law in the future then yes, that will apply to foreigners. But currently there is no such law. I am not a US citizen and have an account with IB US for a number of years. Other than US tax on dividend is IB not taking any US taxes from my account. There is no such thing as estate tax for foreigners at IB US.
Bad news for you. A google search will tell you such a law does exit. Better make arrangements accordingly before you pass away.
For cash, no. For other, U.S. assets, yes because Singapore and the U.S. have no tax treaty between the two countries. https://www.irs.gov/individuals/int...s-with-us-assets-must-file-estate-tax-returns
The link you provided doesn't explicitly say cash in U.S brokerage owned by foreigners is not subjected to estate tax. For U.S stocks, that is clear. U.S stocks owned by foreigners are subjected to estate tax.
The link has And securities that generate portfolio interest include: https://international.schwab.com/us... that are exempt,or offshore mutual funds are So you could hold the cash in one of those. But a better solution is to avoid dying.