US Estate Tax on US Stocks: The US$60,000 Threshold, Rates and Why Abolishing Local Estate Duty Doesn't Help

Singapore abolished its own estate duty years ago, so many investors assume inheritance tax is not an issue. For US stocks, that assumption is wrong: US federal estate tax can apply to US assets held by non-US persons, at rates up to 40%.

Singapore: estate duty removed since 15 February 2008

IRAS states that estate duty has been removed for deaths on and after 15 February 2008, under the Estate Duty (Abolition) Act 2008. That only concerns Singapore's tax. It does not change how the United States taxes US-situated assets.

Who is affected on the US side?

A "nonresident not a citizen" (NRNC) of the US is subject to US estate tax on US-situated assets. The IRS says stock of corporations organised under US law is located in the US regardless of where the certificates are physically held. US stocks and US-domiciled ETFs in a Singapore brokerage account still count.

The US$60,000 threshold and the US$13,000 credit

Under the Form 706-NA instructions, the executor must file Form 706-NA if the date-of-death value of the decedent's US-situated assets (plus certain adjusted taxable gifts) exceeds US$60,000, generally within 9 months of death. The maximum unified credit for an NRNC is generally US$13,000, which equals the tax on a US$60,000 taxable estate under the rate schedule.

Unified rate schedule (IRS Form 706, Table A)

Taxable estate over	But not over	Tax on lower amount	Rate on excess
$0	$10,000	$0	18%
$10,000	$20,000	$1,800	20%
$20,000	$40,000	$3,800	22%
$40,000	$60,000	$8,200	24%
$60,000	$80,000	$13,000	26%
$80,000	$100,000	$18,200	28%
$100,000	$150,000	$23,800	30%
$150,000	$250,000	$38,800	32%
$250,000	$500,000	$70,800	34%
$500,000	$750,000	$155,800	37%
$750,000	$1,000,000	$248,300	39%
$1,000,000	—	$345,800	40%

Worked example

US$300,000 of US stocks, no deductions: tentative tax = $70,800 + ($300,000 − $250,000) × 34% = $87,800; less the $13,000 credit = about US$74,800.

Is there a treaty?

The IRS lists the countries with US estate (death) tax treaties in effect, including Australia, Canada, Japan and the United Kingdom. Singapore is not on that list, so the standard nonresident rules apply.

Ways investors manage the risk

Hold broad-market exposure through non-US (for example Irish-domiciled) funds, whose shares are generally not US-situated.
Note that US bank deposits not connected with a US business are generally treated as located outside the US (see the 706-NA instructions).
Keep records so your family knows which accounts exist. Releasing US assets often requires an IRS transfer certificate, which takes time.

This is a simplified overview that ignores, for example, deductions apportioned by worldwide assets. For significant sums, speak to a cross-border estate planning professional.

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Sources

Facts checked on 17 October 2026. General information only; not tax, legal or investment advice.

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