Here I want to clarify this mystery around a particular regulation on the US estate Tax (Erbschaftssteuer) and Gift Tax (Schenkungssteuer).
As MP pointed out in his post about the mustachian 3-fund portfolio, Swiss investors should stay clear of the 60’000 Dollar mark for US domiciled Funds. MP cites a Credit Suisse brochure (for once english!). The basic conclusion is that as long as you don’t qualify as a US person (after the varying definitions of the US Tax authorities) you are considered a Non Resident Alien (NRA) that can make use of a $60’000 Estate Tax Exemption.
To my best current knowledge this means that if you stay below this $60k with your US domiciled assets AND don’t qualify as US person, you won’t have to deal with this. if you breach it or if you become a US person for Estate Tax purpose, you may pay some taxes when passing these assets to you heirs after death.
Does anybody know if there are further complications of this sort?
According to this Article, foreign stocks (from the US View) and a few other assets are comletele exempt from estate tax for NRAs. There is even a tax treaty between Switzerland and US, but the numbers of their example dont give me the impression of a significantly changed situation.
What is your knowledge about this?