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LearnFAQImmigrant & NRI Finance

Could US estate tax apply to US stocks I own as a nonresident alien of India?

Answer

Yes, and many Indian investors are blindsided by it. If you are a nonresident alien (you live in India and aren't a US tax resident) but hold US-situs assets — US stocks, US-domiciled ETFs, and US real estate — those assets are exposed to US estate tax at death. The brutal part: nonresident aliens get only a $60,000 exemption, versus the roughly $13.99 million 2025 exemption for US citizens and residents, with rates climbing to 40% above that. So an Indian resident holding $500,000 of US shares could face a six-figure US estate-tax bill. Common workarounds include holding US exposure through non-US-domiciled (e.g., Ireland-domiciled) ETFs, which generally aren't US-situs for estate purposes. If you're not a US person but invest in US markets, get estate-tax advice before building a large US-stock position.

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