Estate and Gift Tax Situs of Assets – Basic Rules

Individuals who are not US citizens and are not domiciled in the United States for transfer tax purposes (non-resident aliens) are subject to US gift tax only on gifts of real property and tangible personal property located in the United States. On death, a significantly broader list of property is subject to US estate tax. Advisers to families with international investments should familiarise themselves with the basic US situs rules and options for owning US-situs assets that may shelter them from gift and estate tax. Then, a closer look at specific holdings can further clarify US tax situs and avoid uncertainty at death (for further details please see “Estate and gift tax situs of assets – specific examples”). December 3, 2020. Download.