Indians with US assets? Here’s how to plan for estate and gift taxes
Indians typically view the US as a stable destination and a land of opportunities. In today’s interconnected world, where global mobility is the norm, more Indians have ties to the US, not just family but also business, financial, and other interests.
Indian families who have members based in or are citizens of the US face unique and complex estate and tax planning needs, and ignorance often leads to high taxes and penalties. Therefore, careful planning is essential to minimize potential tax liabilities.
Indians who own US assets may be subject to US estate taxes, regardless of their citizenship or residency status, even if they live outside the US.
“US persons" (i.e., US citizens and resident aliens) are subject to gift, estate, and generation-skipping transfer taxes on their worldwide assets. Others who are non-US citizens, first have to determine whether they are considered a resident alien or a non-resident alien. This classification depends on factors such as time spent in the US, visa status, and personal connections, etc. This is important since nonresident aliens are only subject to gift & estate taxes on US-located assets (commonly referred as US situs assets).
Non-resident aliens (NRAs) would typically be Indian citizens who temporarily live in the US and do not intend to make it their permanent residence. Usually, for NRAs most of the wealth may be located outside the US, NRAs remain subject to specific US gift and estate tax on their US-based assets, such as real estate, stocks in US companies, etc.
Also Read: Your guide to investing in the US and global stocks through the Liberalized Remittance Scheme
There is a generous US gift and estate tax exemption of $13.99 million (as of 2025), which is not available
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