Is it true some countries don't have estate tax at all?

Question

Hong Kong and Singapore for example, (aren't they both very successful in economy?) So, if you send money over there and allow your children to inherit it, you don't have to pay tax?

Answer 1

At the present time, the first $2,000,000 isn't taxed.  If you receive property, the values are reset to the fair market value at date of death.

In 2010, the estate tax is scheduled to repealed for one year, but if you inherit property, it will NOT be revalued.  The heirs will owe capital gains tax.  On property rich estates, the heirs could actually lose more money to taxes than under the current system.

Answer 2

If you are a U.S. citizen, the estate tax when you die is based on your total, worldwide, estate.  Moving assets to another country does not reduce the estate tax that must be paid when you die.

Enforcement is another matter.  Some countries will not allow the IRS to seize property located in their borders.  However, your children may not be able to get the property back into the U.S. without paying the tax.