Kaptal

US Estate Tax Exposure

If you are not a US person, the US taxes your US-situs assets above $60,000 at up to 40 % when you die. Most expats holding VOO or VTI have no idea.

IRC §2101 · Form 706-NA

Your holdings

Only US-domiciled assets count.

$

VOO, VTI, SPY, individual US shares. Held anywhere — the broker's country does not matter.

%

Used for the annual withholding comparison.


Only 15 countries have an estate tax treaty with the US. The UAE and Singapore are not among them.

Result

What your heirs would owe the IRS today.

Estimated US estate tax

How it is calculated

US-situs estate
Tentative tax graduated 18 – 40 %, Form 706 Table A
− Unified credit shelters the first $60,000
= Estate tax due

Same money, two fund domiciles

US-domiciled (VOO, VTI)

Estate exposure
Dividend withholding
Annual drag

Irish UCITS (CSPX, VWRA)

Estate exposure
Dividend withholding
Annual drag

Why this catches people out

US estate tax on non-residents applies to US-situs assets, and shares of US companies are US-situs regardless of where you hold them. The IRS states it plainly: the rule applies "even if the nonresident held the certificates abroad or registered the certificates in the name of a nominee". Holding VOO at an Asian or European broker changes nothing.

A US citizen dying in 2026 gets a basic exclusion of $15,000,000. A non-resident alien gets a unified credit of $13,000 — which shelters exactly $60,000. Everything above that is taxed on a graduated scale reaching 40 %, and the estate must file Form 706-NA.

Irish-domiciled UCITS avoid it entirely

A fund domiciled in Ireland is not a US-situs asset, so it sits outside the US estate tax net. It also pays a lower rate on the way in: 15 % withholding at fund level under the Ireland–US treaty, against the full 30 % that applies to a resident of a country with no US income tax treaty. For a UAE or Singapore resident, the Irish route wins on both counts — every year, and at the end.

And if you are American, it inverts

US citizens and green-card holders abroad face the opposite problem. Irish UCITS are PFICs, triggering Form 8621 per fund per year and an excess-distribution regime that can cost more than the withholding it saves. The correct answer for a US person is usually the one that is wrong for everyone else — which is exactly why generic expat advice is dangerous.

Note: this is an estimate for orientation, not tax or legal advice. It applies the Form 706 Table A graduated schedule to your US-situs assets and subtracts the $13,000 unified credit. It does not model treaty pro-rating, joint ownership, US real property, marital transfers, or state level tax. Estate planning across borders needs a qualified adviser in both jurisdictions.