Previously published in The Fund Library
Snowbirds who decide to buy U.S. real estate may run into a host
of cross-border tax traps, problems, and pitfalls. (See my previous article on these.) And if you
were hoping to pass along that little piece of paradise to your
heirs without a visit from the IRS, forget it. If you continue to
own the U.S. property until you pass away, you will be subject to
U.S. estate tax, which in the past has ranged from 18% to as high
as 55%. Luckily there are a few strategies to help you reduce or
eliminate the U.S. estate tax bite.
Currently, the U.S. estate tax rate ranges from 18% (where value
is less than US$10,000) up to 40% (on amounts exceeding US$1
million) on the fair market value of your U.S. property.
