Cross-border estate administration can be challenging, particularly when it involves U.S.-based assets. One of the most important rules that executors, solicitors, and beneficiaries need to be aware of is the U.S. estate tax threshold for non-resident, non-citizens. This rule often comes as a surprise, especially to those managing international estates for the first time.

The $60,000 Threshold

For individuals who are not U.S. citizens and who do not reside in the United States, the U.S. estate tax exemption is significantly lower than for U.S. citizens or residents. The exemption is just $60,000.

This means that if the value of a non-resident’s U.S.-situated assets exceeds $60,000 at the time of their death, their estate may be subject to U.S. estate tax. Unlike the much higher exemption available to U.S. citizens and residents, this lower threshold often catches executors and beneficiaries off guard.

What Assets Are Covered?

The U.S. estate tax rules apply to a range of U.S.-situated property. This typically includes:

• U.S. real estate such as houses, land, or investment property.
• U.S. stocks and securities, regardless of whether they are held directly or through a broker.
• Certain other U.S.-based property, depending on how and where it is held.

It is important to note that these rules can apply even if the individual lived outside of the United States for their entire life, simply because they owned assets located in the U.S.

Estate Tax Filing Requirements

When the total value of U.S. assets exceeds $60,000, the estate is required to file a U.S. estate tax return. This is done using Form 706-NA (United States Estate Tax Return for Non-resident Aliens).

The return reports:

• The type and value of the decedent’s U.S.-based assets.
• Any applicable deductions, such as debts or expenses tied to those assets.
• The calculation of any estate tax due.

Depending on the complexity of the estate, preparing Form 706-NA can be a time-consuming process, often requiring detailed records, valuations, and supporting documents.

Why This Matters for Executors and Advisers

The $60,000 threshold is an important consideration for probate solicitors, accountants, and executors dealing with cross-border estates. A relatively modest holding of U.S. shares or property can trigger the filing requirement, creating unexpected responsibilities and costs.

Failing to comply with U.S. estate tax obligations can delay the distribution of assets, particularly if U.S. financial institutions require confirmation that estate taxes have been addressed before releasing funds.

How Share Data Can Help

At Share Data, we understand how complex international estate administration can be. Our team has extensive experience assisting executors, solicitors, and accountants with:

In Summary

The $60,000 U.S. estate tax threshold is a critical rule for non-resident estates that hold U.S. assets. Knowing when the threshold applies and understanding the filing requirements is essential to avoid costly delays and penalties.

👉 If you are managing an estate with U.S.-based assets, Share Data can provide the expertise and support you need to navigate these complex requirements.