Thanks but it's still not as efficient as cash. One will incur commission to buy and sell securities that generate portfolio interest that are exempt from estate tax. Avoiding death is not a solution. Haha. No one is God.
Singapore banks and brokers report everything each year to USA. IRS will come after you hard and heavy. Pay FULL taxes on everything! BTW..USA "trust" estate tax rate is 33%
The original question was about estate tax, which refers to a tax on the value of assets when a person dies. I think you are confusing estate tax with income tax. The estate tax, or death tax as it is often called, is indeed applicable to a person who is neither a US citizen nor a US resident, if they own assets located in the USA at the time of their death. And the definition of "assets located in the USA" includes common stock of US-based corporations, even if the stock is held in a brokerage account that is not based in the USA. Some countries have a death tax treaty with the USA, and citizens of those countries may not have to pay US estate tax when they die. Income tax is completely different. If a person is not a US citizen or resident, and their assets are held in a brokerage account that is not based in the USA, then in most cases, US income tax is not applicable. A trust and an estate are two different things. Both entities use Form 1041, and this may be what is confusing you. In some cases an estate may have to pay income tax, and that tax is reported on Form 1041. But the estate tax, or death tax, is reported on Form 706. BMK
The short answer is yes, because the estate tax applies to the value of assets located in the USA on the date of death. But the real answer is more complicated. If someone is terminally ill and knows they are dying, and they move all their assets out of the USA one week before their death, that will not avoid the estate tax. The law has a lookback period. Transfers that take place within a certain period of time before death are still included in the estate that is subject to US tax. So you have to study the rules very carefully. BMK
https://www.cl-law.com/news-events/...014, New York passed,2014 and January 1, 2019. This link says the lookback period applies to gifts to family members. Furthermore, estates of non-residents are not subject to look back period.
Estate tax on U.S equities in any brokerage is not disputed. This part I am sure. What I am not sure is whether CASH in a Singapore-registered brokerage account but is a subsidiary of IBKR (U.S broker) is subjected to estate tax. To me, it sounds rather unreasonable that cash in a subsidiary non-US brokerage account is subjected to U.S tax but a non-US IBKR client had better be sure on such matters in case he/she passes away suddenly. In fact, this question is of relevance to all the international clients of IBKR, including Hong Kongers, Australians, Europeans. Is cash stored in IB HK, IB Australia also subjected to U.S estate tax? If even cash is subjected to U.S estate tax in a non-US subsidiary brokerage account, many high net-worth international clients who actively trade will shun using U.S brokerages since the sum of money involved in not small.
The article in that link is about an estate tax in the State of New York. It is not about the federal estate tax. BMK
Interesting question..... have you asked IB Singapore? by the way your question is only about cash or assets like Stock also ? If it is stock then it is an US asset, and may be the estate tax comes in to picture but how would cash be an US asset if it is not held in a US bank in USA? IB Singapore holds your cash in a Singapore bank correct What if your cash is with a Sing broker like Phillip Capital? Just becasue IB Singapore is owned by a US company should not matter when it comes to cash!