Estate Tax - Ireland listed ETFs in a US brokerage account

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Topic Author
CK18
Posts: 3
Joined: Fri Apr 09, 2021 8:45 am

Estate Tax - Ireland listed ETFs in a US brokerage account

Post by CK18 »

Hello guys,
I have been switching my ETFs investments from US listed to Ireland listed in order to pay less withholding tax on dividends and to avoid the US estate tax.
Currently I am using interactive brokers which is a US Online Broker basically.
Could owning Ireland listed ETFs or other non US assets, still make me liable to Estate tax since they are purchased on Interactive Brokers?
Thank you very much for your help !
CK
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galeno
Posts: 2653
Joined: Fri Dec 21, 2007 11:06 am

Re: Estate Tax - Ireland listed ETFs in a US brokerage account

Post by galeno »

Money invested in UCITS ETFs is not subject to USA inheritance taxes. The domicile of the broker does not matter.

Nor is money invested DIRECTLY in US treasuries or in FDIC USA bank accounts subject to them.

But your CASH in the MMF is exposed. Keep it below $60k.
KISS & STC.
TedSwippet
Posts: 5166
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Estate Tax - Ireland listed ETFs in a US brokerage account

Post by TedSwippet »

Welcome.
CK18 wrote: Fri Apr 09, 2021 8:51 am Could owning Ireland listed ETFs or other non US assets, still make me liable to Estate tax since they are purchased on Interactive Brokers?
Non-US 'situs' assets are not at risk from US estate tax, so your Ireland domiciled ETFs should be safe from that even if held in a US broker. Your main remaining risk of US estate tax is any cash holding above $60,000 in a US broker. If you keep below this you ought to be fine. A brokerage account is not the place to keep long-term cash anyway.

Full details in the wiki: Nonresident alien taxation - Bogleheads
Topic Author
CK18
Posts: 3
Joined: Fri Apr 09, 2021 8:45 am

Re: Estate Tax - Ireland listed ETFs in a US brokerage account

Post by CK18 »

galeno wrote: Fri Apr 09, 2021 10:58 am Money invested in UCITS ETFs is not subject to USA inheritance taxes. The domicile of the broker does not matter.

Nor is money invested DIRECTLY in US treasuries or in FDIC USA bank accounts subject to them.

But your CASH in the MMF is exposed. Keep it below $60k.
Clear, thank you very much for your reply
Topic Author
CK18
Posts: 3
Joined: Fri Apr 09, 2021 8:45 am

Re: Estate Tax - Ireland listed ETFs in a US brokerage account

Post by CK18 »

TedSwippet wrote: Fri Apr 09, 2021 5:20 pm Welcome.
CK18 wrote: Fri Apr 09, 2021 8:51 am Could owning Ireland listed ETFs or other non US assets, still make me liable to Estate tax since they are purchased on Interactive Brokers?
Non-US 'situs' assets are not at risk from US estate tax, so your Ireland domiciled ETFs should be safe from that even if held in a US broker. Your main remaining risk of US estate tax is any cash holding above $60,000 in a US broker. If you keep below this you ought to be fine. A brokerage account is not the place to keep long-term cash anyway.

Full details in the wiki: Nonresident alien taxation - Bogleheads
Thank you for sharing the link, very clear !
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