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US Estate Tax Liabilities Vary Based on Your Domiciliary Status

July 14, 2023Article
Bloomberg Tax

The concept of domicile is key to determining an individual’s liability for US estate tax purposes.

The estate tax is imposed on transfers at death at a rate of 40%. On a statutory basis, if you’re domiciled in the US at the time of your death, all of your assets will be subject to estate tax, regardless of their location. On a statutory basis, if you’re considered a non-US domiciliary, only assets located in the US will be subject to estate tax.

A US domiciliary may transfer assets with a value up to $10 million, adjusted for changes in the cost of living, without paying any estate taxes. This amount is $12.92 million in 2023 but will be reduced to $5 million adjusted for changes in the cost of living on Jan. 1, 2026.

Read the full article here.

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