Many Israelis have decided that they should invest a significant part of their investment portfolio in US real estate. What they often fail to take into account is that, unlike Israel, the US has an estate tax which may apply to Israelis even though they are neither US citizens nor US residents. If you are a US citizen or resident and you die in 2024, you can leave as much as $13.61 million to family members (in addition to an unlimited amount to your spouse) without having your estate be subject to estate tax. On the other hand, if you are neither a US citizen nor a US resident and die in 2024, you can only leave $60,000 in US-based assets to your family members (including your spouse) before the estate tax applies. These US based assets which in total exceed $60,000 in value can be subjected to a tax rate as high as 40%. There are strategies that can be employed in order to avoid or at least significantly reduce the US estate tax in these circumstances. Please contact us to discuss what alternatives might be available in your situation.
