Trust & Estate Planning

Generational wealth transfer and shielding US assets.

The US Federal Estate Tax is highly punitive for non-resident aliens (NRAs). While US citizens enjoy an estate tax exemption of over $13 million, foreign nationals are granted an exemption of only $60,000.

Any US situs assets (e.g., US real estate, stock in US corporations like Apple or a Delaware C-Corp) exceeding $60,000 are subject to a 40% estate tax upon the death of the foreign owner.

The Offshore Blocker

The standard method to shield US real estate from the estate tax is to ensure the Kuwaiti individual does not own the US asset directly. Instead, they own shares in a Foreign Holding Company (e.g., BVI, Cayman). The Foreign Holding Company then owns the US C-Corporation, which owns the LLC/Real Estate. Because stock in a foreign corporation is not a "US situs asset," the death of the shareholder does not trigger US estate tax.

Irrevocable Trusts

For families executing long-term succession planning, transferring assets into a properly structured Foreign Grantor Trust (or a US domestic trust, depending on beneficiary citizenship) can remove the assets from the patriarch/matriarch's taxable estate entirely, providing asset protection and controlled distribution to heirs.