We believe it is good corporate governance to inform and educate non-U.S. employees on their exposure to U.S. estate/inheritance taxes.
It is common for U.S. based companies to include non-U.S. employees in its equity based compensation plans. What is less known is that by doing so, the company could expose them to U.S. estate/inheritance taxes.
Attracting the best people is what gives a company a competitive advantage. Part of achieving this objective, includes offering attractive total compensation packages. In this context, offering equity compensation but leaving the U.S. inheritance tax risks unattended would go against company values and objectives.
Services for Corporations
We offer a proven education process that informs on the risks and obligations associated with holding U.S. based (situs) assets. Employees sign off acknowledgment and participation confirming that:
- they have been informed about the U.S. inheritance/estate tax risks.
- the company will not be held responsible or liable for any potential taxes.
- they have been recommended to seek professional advice regarding their personal situation.