US Estate Tax Warning: Indians Holding US Stocks Face Potential 40% Levy on Inherited Wealth

Overview

Indian professionals and residents holding US-listed stocks or Employee Stock Options (ESOPs) may be subject to US estate taxes of up to 40% on their death. Unlike US citizens, non-residents are taxed on US-situated assets, including shares of US corporations. With no tax treaty between India and the US, there is no relief, necessitating careful financial planning to protect inherited wealth.