Moving back to India? Your US estate tax-free limit drops from $15 million to $60,000.
Once you become a US non-resident, the US taxes every dollar you hold there above $60,000, at up to 40%. Type what you hold in the US. See what your family would owe.
Free. Term cover quotes from a US insurer and an Indian insurer, side by side.
Add up US stocks, RSUs, your 401(k) or IRA, and any US home.
Pick the state of your US home or rental to see if it adds a tax of its own.
Federal estate tax only: the 2026 rate table for non-residents, for one person. A rough guide. Your adviser confirms the real figure.
What families say before they move back
- "India has no inheritance tax, so our children will be fine."
- "We will keep the 401(k) in the US. It keeps growing."
- "The rental pays for itself. We will hold on to it."
- "Our CPA files our taxes every year. They would have told us."
Each thought makes sense. Each one leaves your US assets open to a tax of up to 40%. It hits engineers, doctors and professionals who built their savings over 20 years in America.
The day you move back, your tax-free amount falls from $15 million to $60,000.
While the US is your home, an estate under $15 million owes no US estate tax. Once India is your home, the US taxes every dollar you hold there above $60,000, at up to 40%.
Most families find out when the bill arrives. Here is how families plan for it.
Three ways families plan for it
Most families use more than one. The third is the one you can set up this month, and it can cover a state bill too.
1. Hold less in the US
Move some money into India or into funds registered outside the US. Check the capital gains tax with an adviser first.
2. Give some away early
Gifts during your life move assets to your children. The US gift rules differ by asset, so an adviser sets the order.
3. Cover the bill with term insurance
A term policy pays your family a lump sum. They pay the IRS with it and keep the house and the shares.
Take the policy in the US or in India. See both quotes first.
We have no favourite. You compare the cover and the premium, then you choose.
A US policy
Premiums in dollars.
The medical exam and underwriting happen while you are in the US. Allow 4 to 6 weeks before you fly.
An Indian policy
Open to you before or after the move. Indian insurers ask their own set of questions, and our form covers them.
One form. Two quotes. You choose.
You answer once. A specialist gets the quotes from both sides.
- Answer one formAbout 5 minutes. Your age, health, tobacco use, income, the cover you want and what you hold in the US.
- We get both quotesA specialist asks a US insurer and an Indian insurer for a quote on your details.
- You compare and decideBoth quotes side by side. The cover, the term and the premium. The choice is yours.
Three honest reasons to start before you move
1. The US exam happens in the US
A US policy needs a medical exam here. After the move, a US policy is off the table.
2. Premiums rise with age
Each birthday raises the price of the same cover.
3. Health can change
A new diagnosis can raise the premium or close the option. Today's health sets today's price.
Avinash's advice in his video: plan 2 to 5 years before the move.
If you leave it for later
The bill arrives 9 months after a death. Your family sells the house or the shares on the IRS's timetable.
If you plan it now
A term policy pays the bill. Your family keeps the house and the shares.
$2.4 million in the US. $892,800 to the IRS.
Say you move back to Bengaluru. You keep your US investments and a rental home.
| US brokerage account | $800,000 |
| 401(k) | $400,000 |
| Rental home in Fremont, California | $1,200,000 |
| Total in the US | $2,400,000 |
| US estate tax due in 9 months | $892,800 |
| What reaches the family | $1,507,200 |
Worked with the 2026 rate table and the $13,000 non-resident credit. While you lived in the US, the same estate owed $0 in federal tax.
Prefer to watch? Avinash lived in the US for 20 years before moving back. In this video he walks through the same family's numbers.
Where does a family find $892,800 in 9 months? They sell the house at whatever price the market gives, or borrow against it. If the children are US citizens, they get no exemption either.
Your family pays the US first. Then they inherit.
US brokers usually hold the account until the tax is settled. The deadline is 9 months.
- You move backYour US stocks, 401(k) and property stay in the US.
- Years later, a deathThe US adds up everything you held there that day.
- Within 9 monthsYour family files Form 706-NA and pays the tax.
- Then the releaseThe IRS issues a transfer certificate. Only then does the broker hand over the account.
What the US counts, and what it leaves out
US shares count wherever you hold them, even in an Indian account.
Counted
- US stocks and US-listed ETFs
- RSUs and ESPP shares
- 401(k) and IRA balances
- A US home or rental property
- A US business
Usually left out
- Cash in a US bank savings or checking account
- A life insurance payout on your life
- Funds registered outside the US, such as Ireland-domiciled ETFs
- US Treasury bonds
- What you hold in India
Your state can send a second bill.
Everything above is the federal tax. 12 states and DC add an estate tax of their own.
Still living in the US?
Your state counts everything you own: shares, 401(k), savings, and life cover you own on your own life. Oregon starts at $1 million. Massachusetts starts at $2 million. Washington and Minnesota start at $3 million.
Moved back to India?
A state can tax only your home, land and belongings there, so your shares and 401(k) face the federal tax alone. One exception to check: Hawaii's rules for non-US citizens also list some company shares. A rental in Portland, Boston or Seattle can still bring a state bill on top of the federal one.
See the 12 states and DC, with their 2026 lines and rates
| Estate tax state | 2026 line | Rate |
|---|---|---|
| Connecticut | $15,000,000 | 12% |
| DC | $4,988,400 | 11.2% to 16% |
| Hawaii | $5,490,000 | 10% to 20% |
| Illinois | $4,000,000 | Up to 16% |
| Maine | $7,160,000 | 8% to 12% |
| Maryland | $5,000,000 | Up to 16% |
| Massachusetts | $2,000,000 | 0.8% to 16% |
| Minnesota | $3,000,000 | 13% to 16% |
| New York | $7,350,000 | 3.06% to 16% |
| Oregon | $1,000,000 | 10% to 16% |
| Rhode Island | $1,838,056 | 0.8% to 16% |
| Vermont | $5,000,000 | 16% |
| Washington | $3,000,000 | 10% to 20% |
Inheritance tax. Five states also tax some heirs: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania. A spouse pays nothing in any of them. Children pay nothing in Kentucky, Maryland and New Jersey, 1% above $100,000 in Nebraska and 4.5% in Pennsylvania. Friends and distant relatives pay the most, up to 16%.
Good news for cover. In all five, life insurance paid to a named person stays outside the inheritance tax. Once you live in India, the estate tax states leave a payout on your life alone too.
Lines and rates from each state's 2026 tax forms and pages. Washington's line applies to deaths from 1 July 2026. Once New York's taxable estate passes $7,717,500, 105% of its line, New York taxes all of it from the first dollar.
In our example, the rental sat in California, which has no estate tax. Put the same house in Portland, Oregon, and Oregon adds its own bill on top of the IRS one.
What people ask before they start
Does the India-US tax treaty protect me?
That treaty covers income tax only. India and the US have no estate tax treaty.
I am a US citizen. Does this apply to me?
A US citizen keeps the $15 million allowance wherever they live. This page is for Indian citizens and green card holders who move back.
My spouse inherits everything. Is that tax-free?
Yes, when your spouse is a US citizen. For any other spouse, the assets need to pass through a QDOT trust to delay the tax.
Is the insurance payout taxed?
The US leaves a life insurance payout on a non-resident's life out of the estate. In India, a death payout is tax-free under section 10(10D).
Does my state add its own tax?
12 states and DC have an estate tax, and five states tax some heirs. While you live in one of them, it counts everything you own. Once you live in India, a state can tax only your home, land and belongings there (Hawaii also lists some company shares for non-US citizens).
Is the insurance payout taxed by a state?
Once you live in India, the estate tax states tax homes, land and belongings there, so the payout stays outside. In all five, life insurance paid to a named person stays outside the inheritance tax.
What about cash in a US bank?
Ordinary US bank deposits are usually left out. Brokerage cash and money market funds can count, so list them in the form.
Do I need to be in the US to apply?
For a US policy, yes. The exam and underwriting finish while you are in the US, so allow 4 to 6 weeks before you fly. An Indian policy works from either country.
What does it cost me?
The form and both quotes are free. The premium depends on your age, health, the cover and the term. Each quote shows it.
Why so many questions?
A US quote and an Indian quote need different details. One form carries both, so you answer once.
See what it costs to keep your US assets in the family.
Still in the US? The medical exam for a US policy happens before you fly. Start the form today and the quotes arrive while you still have both options.
- Click the buttonThe form opens on this page.
- Answer onceAbout 5 minutes, for both sides.
- Compare two quotesA specialist sends the US and the India quote. You choose.
Free. About 5 minutes. You decide after you see both quotes.
In short: up to 40% of your US assets to the IRS, plus any state tax, due 9 months after a death. One free form, about 5 minutes. Two quotes. You choose.