Archive · 20 Nov 2025
Indian Investors' US Stocks & ESOPs Face Hidden Estate Tax Risk
Some Indians investing in US stocks or getting stock options from US companies might have to pay a big tax in the US after they die.
This is because the US wants to tax some of the money these people make, even if they never lived there.
Indians can't avoid this tax, but they can plan ahead to pay less.
It's important to know about this so you can protect your family's money.
Indian professionals with US stocks or ESOPs may face US estate tax
Up to 40% of wealth can be claimed by US after death
US estate tax applies to assets situated in the US, including shares of US corporations
India has no estate tax treaty with the US, providing no relief
Planning strategies can help reduce estate tax exposure
- Who
- Indian investors with US stocks or ESOPs
- What
- Face US estate tax
- When
- After death
- Where
- In the US
- Why
- To tax assets situated in the US
Pro-US Estate Tax
Anti-US Estate Tax
Cross-Border Taxation
Pro-US Estate Tax
It's fair to tax assets situated in the US, regardless of the owner's residence
Anti-US Estate Tax
It's unfair to tax assets of non-residents who have no connection to the US
Estate Tax Relief
Pro-US Estate Tax
India should negotiate a tax treaty with the US to provide relief for Indians
Anti-US Estate Tax
Indians should not expect special treatment and should plan accordingly
- Estate Tax Rate
- Progressive, starting at 18% and going up to 40%
- Tax Filing Deadline
- Nine months after death
- India-US Estate Tax Treaty
- None, providing no relief for Indians
- Assets Qualifying for Step-Up in Basis
- Stocks, mutual funds, ETFs, and real estate