Are my shares subject to taxation after I pass away?
getArrange is not a taxation consultancy firm and does not provide tax advice. The information shared here is based on publicly available sources. You should always consult the relevant brokerage regarding your specific case.
Additionally, your account may be a custodian account [i.e. shares are held in custody with the brokerage), or a non-custodian account (i.e. shares are transferred to another account such as Singapore’s Central Depository (CDP)], and the treatment/taxation may differ depending on the account type.
Singapore Shares
There is no inheritance tax in Singapore, and estate duty (estate tax) has been abolished for individuals who passed away on or after 15 February 2008.
However, income tax may still be payable if the estate or a testamentary trust generates income—this includes income derived from Singapore shares.
Read more: Is there estate tax in Singapore?
Shares from Other Countries
Unfortunately, our expertise is focused primarily on estate planning matters within Singapore. We are unable to provide advice on overseas tax matters, which can vary significantly across jurisdictions. Tax regulations in other countries often require specialised knowledge of local laws and should be referred to a professional adviser in the relevant country.
United States of America
"Certain deceased nonresidents who were not citizens of the United States are subject to U.S. estate taxation with respect to their U.S.-situated assets. For estate tax purposes, a citizen of a U.S. possession is not a U.S. citizen.
U.S.-situated assets that are subject to estate tax include, for example:
- Real estate located in the U.S.,
- Tangible personal property (excluding some art), and
- Stock of corporations organized in or under U.S. law, even if the nonresident held the certificates abroad or registered the certificates in the name of a nominee."
"The executor must file Form 706-NA if the date of death value of the nonresident non-citizen decedent’s U.S.-situated assets, together with the gift tax specific exemption and the amount of adjusted taxable gifts, exceeds the filing threshold of $60,000."
United Kingdom
If you’re based abroad, Inheritance Tax is only paid on your UK assets, for example property or bank accounts in the UK.
HM Revenue and Customs () will treat you as being based abroad if you have lived in the UK for less than 10 years in the last 20.
Inheritance Tax is not paid on ‘excluded assets’ like:
- foreign currency accounts with a bank or the Post Office
- overseas pensions
- holdings in authorised unit trusts and open-ended investment companies
Source: https://www.gov.uk/inheritance-tax/when-someone-living-outside-the-uk-dies