Many clients I speak to are actively growing their wealth through US stocks, ETFs, and property. But few realise that those same assets could be taxed heavily upon death, even if you're not a US citizen or resident.
Being situated in Singapore, as investors we enjoy zero capital gains tax, zero dividend tax and zero estate duty tax. But US tax laws apply globally. Once your US-situated assets exceed USD 60,000, your estate could face up to 40% tax. And that's not cool as it can erode your wealth that you have painstakingly grow by 40%. That USD 10M could end up with USD6M in the hand of your beneficiaries, with USD4M given to IRS.
So, if you are an investor with cross-border portfolio, plan ahead:
The only certainty in life is death. The only unknown is time. Don’t let estate tax be the silent trap in your wealth journey. Be prepared, mitigate and structure wisely.
