On ESOP value over US$ 60,000 US estate tax up to 40% can be levied after death of even a non-US resident; Here’s how to manage its impact on legal heirs

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Indian professionals holding US ESOPs and RSUs face a significant risk of up to 40% US estate tax on assets exceeding $60,000 after their death. This applies even if they are non-residents. Experts suggest strategies like routing shares through GIFT City, investing in UCITS ETFs, or lifetime gifting to mitigate this substantial tax burden for legal heirs.