Key Post Be careful if you hold more than $60,000 in US equities

Discussion in 'Investments' started by Marc, Jan 17, 2015.

  1. Galtee

    Galtee New Member

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    Hi All. Just joining this thread now. My question is the same as trmartin above (I think).

    If a husband & wife have a joint a/c with an Irish Stockbroker and one of them dies, does anybody know if there is any impact on their share portfolio & whether or not this Estate Tax discussion is even impacted?

    Furthermore, in this case, if the couple have adult children who have already maximised their Group A threshold through lifetime gifts, then i'm assuming when the 2nd spouse dies, then the Executors can ensure that there is a tax offset between the Inheritance tax payable by the children (33%) and the 40% US Estate Tax ?
     
  2. Gordon Gekko

    Gordon Gekko Frequent Poster

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    In reality, US Estate tax would only arise if the Executors went out of their way to pay it.
     
  3. Sarenco

    Sarenco Frequent Poster

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    I gather (although I'm open to correction on the point) that in the case of jointly owned property, US tax law assumes that 100% of the property value is included in the estate of the first joint owner to die.

    However, the repeal of (federal) estate tax was one of President Trump's big ideas so this issue may fall away as a concern.
     
  4. SirMille

    SirMille Frequent Poster

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    Exactly, that's why I shut down my Waterhouse
     
  5. Sarenco

    Sarenco Frequent Poster

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    As things stand.

    The IRS could, of course, simply require qualified intermediaries to notify them on the demise of a holder of relevant US securities. That doesn't look very likely at the moment but circumstances change.
     
  6. Brendan Burgess

    Brendan Burgess Founder

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    This discussion reminds me of the Eighties in Ireland. Bank managers and financial advisors told people: "Tell us you are non-resident and we won't have to deduct tax on your deposit interest or declare it to Revenue. Everyone is doing it. It's fine."

    Brendan
     
  7. Gordon Gekko

    Gordon Gekko Frequent Poster

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    Guys,

    I can only report what the reality is.

    Sarenco, you seem to delight in contradicting me; in this case my sense is that you're reaching. There is no immediate prospect of this coming under the microscope according to any of the experts in the field.

    Gordon
     
  8. Sarenco

    Sarenco Frequent Poster

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    In what way am I contradicting you! Read what I actually said.
    Did I suggest otherwise?