Steps to do in the case of a US account non-resident holder death

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Tylenol Jones
Posts: 290
Joined: Mon Sep 14, 2009 6:54 am

Steps to do in the case of a US account non-resident holder death

Post by Tylenol Jones »

Many of us are having US-based brokerage or bank accounts, so I was curious if anyone knows what are the exact steps to do and forms to be filled by the relatives in the case of the account holder death? It'd be great to have a wiki page on this topic.
theresearcher
Posts: 95
Joined: Sat Jul 25, 2020 12:51 pm

Re: Steps to do in the case of a US account non-resident holder death

Post by theresearcher »

It's likely bank/broker dependent but could include the following:

IRS form 706-NA for the (foreign) estate
Form W8-BEN for either the estate itself and/or foreign beneficiaries
Grant of Probate- or an equivalent process for small estates- in the State where the account is deemed to be located.

Many States will accept an out-of-state/non-U.S. will for probate however this is fact-dependent.
Many banks/brokerages will allow Transfer on Death designations for non-resident account holders and/or beneficiaries but this is not universal.

Short answer- It would be recommended to find out in advance from the bank/brokerage what the procedure would be and include these details with your estate plan.
123
Posts: 6412
Joined: Fri Oct 12, 2012 3:55 pm

Re: Steps to do in the case of a US account non-resident holder death

Post by 123 »

The procedures and mechanisms are likely going to vary widely depending on the country of the account holder's death and the countries of residence of any beneficiaries. In some countries it is going to be very easy if their civil and banking systems are similiar to the USA. If the civil and banking systems are very dissimilar to the USA it could take considerable time, effort, and expense to resolve things.

Tax regulations (both USA and foreign) could further complicate the situation.
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