Protect Your US Investments: Essential Strategies for Singaporean Investors

Many Singaporean investors are building impressive investment portfolios, including US stocks and, for some fortunate individuals, Restricted Stock Units (RSUs) and stock options. However, a crucial detail often overlooked is the US estate tax.

This tax applies to US assets exceeding US$60,000 in the estate of a non-resident alien, with rates reaching up to 40%.


The Burden on Beneficiaries

Imagine this: you’ve diligently built a US$1 million stock portfolio. Upon your passing, your loved ones inherit this wealth. Unfortunately, before they can access and potentially sell these stocks, they’ll face a hefty US estate tax bill – up to US$400,000! This can significantly deplete your legacy and force your beneficiaries to sell assets at potentially inopportune times.

Proactive Strategies for Peace of Mind

Fortunately, there are solutions to minimize this tax burden and ensure a smoother inheritance process for your beneficiaries:

  1. Tax-Efficient Investments
  • Explore options like non-US-domiciled ETFs and unit trusts. These structures can shield your assets from US estate tax.
  1. Trust Structures
  • Consider establishing a trust to hold your US investments. This can offer greater control over asset distribution and potentially minimize estate tax liability.

      3. Life Insurance Solutions 

  • Regular Term Life Insurance: A term life policy with nomination can provide immediate funds to cover the estate tax bill, allowing your beneficiaries to retain your US stock holdings.
  • Indexed Universal Life (IUL): This solution offers a unique combination of investment growth potential linked to the S&P500, as well as lifetime coverage. For example, instead of directly investing US$100,000 in US stocks with potential estate tax implications, consider allocating these funds to an IUL. This could provide your beneficiaries with a US$1,000,000 estate, free from inheritance tax.

Beyond US Investments: Understanding Global Inheritance Taxes

As investors diversify internationally, it’s important to be aware of inheritance tax implications in other popular investment destinations. For instance, Japan’s inheritance tax ranges from 10% to 55%. Researching the tax landscape in your target markets is crucial for informed investment decisions.

Taking Action for a Secure Future

By understanding the US estate tax and exploring the solutions discussed here, you can protect your loved ones from unnecessary tax burdens and ensure a smoother inheritance process.

Do reach out for a chat if you have any queries on your investment portfolio and legacy planning, and I’d be most happy to guide you through.

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Chan Wen Li Winnie

Winnie Chan is a Certified Financial Planner (CFP) and MDRT Court of the Table qualifier (top 5% of advisers) with 15 years of experience in financial advisory services.

She specialises in helping doctors and high-income professionals build sustainable passive income, protect what they’ve worked for, and create a financial legacy for the people they love. Working across different insurers and investment platforms, Winnie focuses on finding the right fit for each client — not the other way around.

Her experience supporting clients through insurance claims has helped families access the financial protection they planned for, providing peace of mind during life’s most challenging moments.

Winnie was recognised as a Top 5 Weighted Premium producer at Financial Alliance in 2025 — out of close to 500 advisers — and received industry-level recognition for Top 3 Single Premium category Insurer award.

She has also brought financial education to organisations including Carousell Group, Singapore National Eye Centre, and Singtel.

Outside of work, Winnie stays active through regular gym workouts and is an accomplished pianist — recently attaining ABRSM Piano Performance Grade 6 (Merit).
She believes balance matters in finances, and in life.

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