Simplest Setup to avoid US Estate tax on US Stocks

[Radko]

I don't understand all this talk about LLCs and trusts. Why isn't a single foreign company not enough to avoid estate taxes?

Single member companies are all subject to the estate tax. And I don't think they will let you open an account at a US Broker with a foreign entity.

 

[Xshore]

Single member companies are all subject to the estate tax. And I don't think they will let you open an account at a US Broker with a foreign entity.

By members do you mean owners (as members is a term usually used for LLC's)? Are you sure that the US will charge tax on a foreign company? Any link to this information?
How would they even know if the foreign company change owner?

And yes, there are US brokers that accepts non residents.

 

[Radko]

By members do you mean owners (as members is a term usually used for LLC's)? Are you sure that the US will charge tax on a foreign company? Any link to this information?
How would they even know if the foreign company change owner?

And yes, there are US brokers that accepts non residents.

Let's see....
By members I mean shareholders, BOI (beneficial owner information) which has to be disclosed.
There is no difference between a person and a single member company, hence the estate tax is applicable.

Please give me the name of a US Broker "that accepts non residents".
Interactive Brokers US does not accept non-residents, Charles Schwab US does not accept non-residents. They will open the account for you, but it will be with one of their foreign subsidiaries, like Interactive Brokers UK, or Charles Schwab international, but not US.

I suggest that you contact whichever broker you want to open the account with, and you ask them everything about the estate tax, or you can go to Charles Schwab website, and read everything about the estate tax, all the information is there, but basically, anything above $60K, will be taxed at 40%

And when you ask "how will they know if the foreign company change owner?" You have to disclose the name and the country where you live, so they can apply the correct withholding rate on interest & dividends through the form W8-BEN (besides the estate tax, there is a withholding tax on dividends and interest).

I hope that helps.