The $60'000 cap for US investments

[jay]

@PhilMongoose

One thing to watch out for is that the treaty limit of $5 million is apportioned. So, for example, if you have US assets and Swiss assets, you will not effectively get the full $5M exemption!

Yes, the global net worth needs to be below the limit to be fully exempt from estate taxes. As of 2023, the threshold is USD 12.92 million for individuals, double for married couples, though, so this is probably not a concern for most people. That said, there is a chance the exemption will be lowered in the future.

@PhilMongoose

A second gotcha is that the treaty exemption is not automatic, but requires the filing of various forms with the IRS by the relevant deadlines to take advantage of it.

I’m not a US tax expert so take with a grain of salt, but at least Form 706‑NA within 9 months of death and Form 8833 by April 15.

There is some discussion on this towards the end of this thread: Are US ETFs worth the (estate tax) troubles?