Debt obligations issued by the US government are defined as US property for estate tax purposes.

Yet, what if you diversified your portfolio and have an US bank account?

Would these things also count as it property within the US?  It depends.

Say you deposit $75,000 into ABC Bank, which is located in the US.  The amount exceeds the filing threshold of $60,000 for a nonresident non-US citizen, so you will probably have a US estate tax filing obligation.  The bank account is located within the US and the value of the account exceeds the filing threshold.  Before we can say if for sure if you will have a filing obligation, we need to take a closer look at ABC Bank.

The Internal Revenue Code states that deposits to a US branch of a foreign commercial banking business count as property within the US for estate tax purposes.[1]   Yet, deposits with a foreign branch of a US commercial banking business are not considered US property for estate tax purposes.[2]  This exception applies regardless of whether you receive the withdrawals in US currency or are engaged in a US trade or business.[3]

Thus, you must ask yourself if the bank a branch of a foreign bank or a US bank in order to determine if you have property within the US.

[1] IRC §2104(c).

[2] IRC §2105(b)(2).

[3] Treas. Reg. §20.2105-1(j).


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