US estate tax is a tax that is levied on a testator’s estate. It is levied on the estates of US Persons and/or persons resident in the USA. Furthermore, US estate tax may also be levied on the estates of persons who are domiciled outside the USA and are not US Persons. This is the case if certain US assets form part of the estate and exceed USD 60,000 at the time of death.
If the testator’s US assets (e.g. US securities) exceed USD 60,000 at the time of death, they are subject to US estate tax, and a corresponding tax return must be submitted in the USA. The executor or community of heirs is required to submit a tax return to the US Internal Revenue Service (IRS). If this is not submitted, or if the required estate tax is not paid in time, this may result in penalties and interest.
Zuger Kantonalbank does not provide any legal or tax advisory services in connection with its services; nor does it act as executor or representative of the community of heirs for the purposes of US estate tax on US assets. This does not apply to executorships that have been accepted by the bank on the issuing of the letters of testamentary and have not ended.
The bank’s investment universe may include US securities. US securities may therefore be used in relation to the provision of investment advice and asset management. However, this does not alter the fact that the client bears exclusive responsibility for assessing any tax implications of certain custody account assets and their effects on their tax situation in overall terms, or for having them assessed by their tax advisor. Generally speaking, Zuger Kantonalbank advises its clients to obtain independent legal and tax advice regarding their investments.