How selected countries treat trusts and inheritances, and where a U.S. estate and gift tax treaty applies.

 

Country Key estate planning considerations U.S. estate tax treaty?
Australia No estate or inheritance tax, although capital gains consequences may arise. Yes
Canada No inheritance tax, but assets are generally subject to a deemed capital gains disposition at death; cross-border trust planning is important. Yes*
France Trusts may receive significantly different tax treatment; forced heirship rules may apply. Yes
Germany Inheritance and gift tax; civil law treatment of trusts differs from the U.S. Yes
Italy Forced heirship rules and inheritance tax considerations. Yes
Mexico Generally no inheritance tax, but civil law rules and probate procedures may affect planning. No
Portugal Generally favorable inheritance regime, but trusts may not receive the same recognition as under U.S. law. No
Singapore No estate duty, but local trust and tax rules should still be reviewed. No
Spain Regional inheritance tax rules vary; potential forced heirship considerations. No
Switzerland Inheritance tax varies by canton; residency and local law are important planning considerations. Yes

 

 

* Canada does not have a standalone U.S. estate & gift tax treaty; the relevant provisions are contained within the U.S.–Canada Income Tax Treaty.
This table provides only a high-level overview. The impact on any family depends on numerous factors, including residency, citizenship, domicile, the structure of trusts or other entities, applicable tax treaties, and the laws of the relevant jurisdiction.

 

 

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