Several foreign individuals recently came to us after encountering an issue with transferring stock held in the United States from their recently deceased father. The U.S. bank in question was unable to release the stock to the heirs without documentation of a properly filed U.S. estate tax return for the father. As you can imagine, the fact that the father was a foreign individual not residing in the United States complicated matters. Among the many issues and questions involved were the following:
- Is the transfer taxable?
- What is the estate tax exemption for non-resident individuals?
- Is a state estate tax return required to be filed?
In addition to answering these questions, CDH analyzed and discovered provisions in the US/Japan tax treaty that allowed for treatment of the transfer as entirely non-taxable. This expert advice saved our client thousands of tax dollars and resulted in a successful non-taxable transfer of the stock.
This situation demonstrates how helpful an expert analysis can be when dealing with international tax implications. CDH prides itself on being Chicago’s premier international financial consulting firm. For more information or a complimentary estate tax evaluation, please contact Ryan Giolitto at 630-285-0215.