Estate Planning for Non-Resident Aliens in New York: Key U.S. Tax Considerations

Non-resident aliens with U.S. assets may face significant estate tax exposure. Learn how proper planning can reduce U.S. estate tax liability.

Non-resident aliens (NRAs) who own property or investments in the United States—especially in New York—may be surprised to learn they are subject to U.S. estate tax laws. Without proper planning, their estates could face up to 40% estate tax on U.S.-situs assets.

U.S. Estate Tax for NRAs

Unlike U.S. citizens and residents who enjoy an estate tax exemption of over $13 million (as of 2025), NRAs are only entitled to a $60,000 exemption for U.S.-based assets, including:

• Real estate (e.g., condos or homes in NYC)

• U.S. stocks and securities

• Tangible personal property located in the U.S.

Planning Tools for NRAs

To reduce exposure, NRAs may consider:

• Owning U.S. real estate through foreign corporations or holding companies

• Irrevocable trusts with proper situs and structure

• Life insurance held outside the U.S. to provide estate liquidity

• U.S.-NRA estate tax treaties, if applicable (e.g., with Canada)

Each strategy must be tailored to the individual’s nationality, residence, and long-term goals.

Global Estate? Local Rules Still Apply

Even if you live abroad, U.S. tax law applies to assets located here. A well-designed estate plan can help minimize unnecessary taxes and ensure a smooth transfer of wealth.

Contact The Law Office of Jin-Wook Kim, P.C. for guidance on cross-border estate planning strategies that protect your U.S. investments and your heirs.