- Tuesday 05 August 2025
If you work in tech, life sciences, or any globally connected industry, chances are you hold U.S.-based assets as part of your compensation package - RSUs, ETFs, or shares in well-known U.S. companies like Google or Apple.
These may feel like a standard part of your financial life but over time, these shares often accumulate quietly. If you were to pass away holding more than $60,000 in U.S. assets, up to 40% of their value could be lost to the IRS
Many of the professionals we work with aren't aware that their U.S. shareholdings could have estate tax implications and often assume that standard tax forms like the W-8BEN have it all covered.
I Signed a W8BEN Form - A Common Misunderstanding
Many people assume that completing a W-8BEN form covers all U.S. tax obligations - It doesn’t.
- The W-8BEN is designed to reduce U.S. withholding tax on dividends from 30% to 15% under the U.S.-Ireland tax treaty.
- It offers income tax relief but not protection against U.S. estate tax if you pass away
Is There Any Relief? The Ireland-U.S. Double Taxation Treaty
Yes, Ireland and the U.S. have a treaty that may allow your estate to claim a credit against Irish CAT if U.S. estate tax is paid.
However:
- Relief must be claimed manually
- It doesn’t remove the U.S. tax obligation
- It adds complexity to estate administration
Solutions to Consider
The goal is to avoid accumulating a large taxable U.S. position at the point of death.
1. Use Irish or EU-domiciled ETFs
- UCITS ETFs (like those available through Conexim or Davy) are not considered U.S. situs assets and are generally outside the scope of U.S. estate tax.
2. Transfer RSUs or sell U.S. stock regularly
- Avoid building up large U.S. holdings in your estate.
3. Consider gifting early
- If U.S. shares or ETFs are left to a non-U.S. citizen spouse, there’s no exemption from U.S. estate tax. Leaving them directly to children may result in a single round of estate tax instead of two.
- Lifetime gifts can reduce exposure but CGT and age of beneficiaries should be considered & proper planning is key
4. Review how you hold your assets
- Certain non-U.S. corporate structures may shield U.S. assets from estate tax, though this requires careful legal and tax planning.
Cross jurisdiction investing can create complex obligations but with the right advice, they’re manageable. If you'd like to understand how this might apply to your portfolio, we can help you explore your options
