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).
IMPORTANT NOTICE TO READERS
The information contained on this blog is not legal advice. It is provided only as general information, and may or may not reflect the most up-to-date legal developments. This information is not provided in the course of, and receipt of it does not constitute, an attorney-client relationship. It certainly does not substitute for obtaining legal advice from a licensed attorney. Legal advice should take into account the specific facts and circumstances applicable to each individual situation. Viewing this site and reading this blog does not create an attorney-client relationship between you and our firm. Likewise, sending me an email does not create an attorney-client relationship between you and the firm. While I would be happy to hear from you, Flott & Co. PC cannot represent you until we have determined that doing so will not be a conflict of interest. The only way for you to initiate legal representation with the firm is to call me at (703) 525-5110 (X122). If and when Flott & Co. PC enters into an engagement agreement with you, you will be a client of the firm, at which time we will be able to exchange information freely.
Unless otherwise indicated by Flott & Co. PC in writing, any US federal tax advice contained in this blog is not intended or written to be used, and cannot be used, for either (i) avoiding penalties under the US Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matter addressed within. For further information regarding this notice, please see http://www.flottco.com/