Sixty thousand dollars,
against the whole asset
A US person's estate exemption runs into the millions. A non-resident's exemption on US-situs assets is $60,000 — which on a $2 million apartment is a rounding error, and is why structure belongs before the offer.
Before you read on
- General information as of August 2026, not tax or legal advice. This is the area where individual facts and treaty position change the answer most.
- Confirm your own position with a CPA and counsel experienced in non-resident ownership before you structure a purchase.
- Everything here is materially cheaper to arrange before contract than to correct afterwards.
Point 1What counts as US-situs
The category is broader than people expect, and it drives the whole analysis.
| Asset | Generally treated as US-situs? |
|---|---|
| US real property held personally | Yes |
| Shares in a US corporation | Yes |
| Interest in a US LLC | Depends on facts and characterisation |
| Shares in a foreign corporation | Generally no |
| US bank deposits | Often excluded for estate purposes |
| Tangible personal property in the US | Yes |
A simplified framework. Characterisation depends on individual facts and any applicable treaty — confirm with counsel rather than relying on a table.
The row that surprises buyers is the third. A single-member LLC is frequently disregarded for US federal tax purposes, meaning the analysis may look through to the underlying real property. Forming one and assuming the estate question is settled solves a different problem than the one you had.
Point 2The structures people actually use
Lowest running cost, no liability separation, and direct estate exposure above the $60,000 exemption. Suits low-value purchases better than large ones.
Separates the property from your other assets and handles co-ownership cleanly. Estate treatment depends on characterisation and is not automatically favourable.
Solves liability but the shares themselves are US-situs, so the estate question is relocated rather than removed.
Frequently used at scale, with meaningful running costs and income tax consequences that must be weighed against the estate benefit.
Addresses succession and, depending on type and jurisdiction, can help with estate exposure. Requires proper drafting and ongoing administration.
Many structures pair an entity for liability with a separate arrangement for succession. Complexity should be proportionate to the value at stake.
Point 3Proportionality: when complexity earns its keep
Above roughly $1 million the exposure alone justifies the analysis. Below it, simplicity often wins.
Layered structures carry real costs: formation, annual state fees, registered agents, accounting in two countries, and the risk that a structure set up once and forgotten stops serving its purpose. On a $400,000 purchase intended for personal use, the professional fees can outweigh the exposure being managed.
The mistake is not choosing complexity or simplicity. It is choosing either without running the numbers for the actual purchase price and the actual family situation — and then discovering the position years later when it cannot be changed cheaply.
Point 4Treaties, and why the answer is individual
The United States maintains estate and gift tax treaties with a number of countries, and where one applies it can materially change the exemption available or how the exposure is calculated. Whether any provision helps depends on your country of residence, your domicile as the treaty defines it, and your personal circumstances.
This is not a question to resolve from an article, and it is the single strongest argument for engaging a CPA with non-resident experience before the purchase rather than at the first filing deadline. The right structure for a buyer resident in one country can be the wrong one for a buyer resident in another, holding an identical apartment.
Generally $60,000 of US-situs assets, against a far larger exemption available to US persons. A treaty may change the position for residents of certain countries.
Not reliably. A single-member LLC is frequently disregarded for US federal tax purposes, so the analysis may look through to the underlying property.
Real property located in the United States is generally treated as US-situs when held personally. Holding it through certain entities changes the analysis.
Before the contract is drawn, because the buying entity is named in it. Transferring property into an entity after closing can trigger transfer taxes and disturb a mortgage.
Yes. The exposure is created by the first property above the threshold, not by reaching a portfolio size.
Sometimes materially, depending on your country of residence and personal facts. It is the clearest reason to take individual advice rather than general guidance.
RELATED GUIDES
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We coordinate with clients' CPAs on structure before contract. Talk to us early — this is the decision that most rewards being early.
Important notice
The figures on this page are general information as of August 2026 and do not represent an offer, a quote, or a guarantee of any transaction terms. Reinvent NY does not provide legal, tax, or investment advice. Confirm anything material with an attorney and a CPA before you act on it. Nothing here is a solicitation to invest, and no return is promised. Real estate brokerage services are provided through R New York.