August 2025
The content published by DR has been a great help before our move back to India.
Services / US Estate Tax & Term Insurance
Term Insurance Cover
Term life insurance can cover the estate tax bill on your US assets
A policy sized to the bill is how non-US-domiciled families usually handle this. The reason it is needed: a US citizen passes $15 million free of federal estate tax in 2026; a non-domiciled person holding US assets gets $60,000, and the excess runs up to 40%. Underwriting must finish before you fly.
- A policy sized to the bill
- Benefit sits outside the US estate
- Premium is a fraction of it
- Underwriting must finish before you fly
The policy is what settles the bill, not your family.
If you are an Indian national on an H-1B, L-1, or similar visa and you own US assets, a home, an investment account, a business interest, those assets are US-situs property in the eyes of the IRS. A non-domiciled person's estate gets a $60,000 exemption, the tax on everything above it runs up to 40% of the excess, and the estate settles that bill usually within nine months of death. A term life policy sized to the exposure gives the estate the cash to pay on time, so nothing has to be sold in a hurry to raise it. Proceeds on the life of a non-resident are not themselves US-situs property, which is why this is the structure that works.
$60,000 exemption, then up to 40%
Settled within about nine months
A policy covers the bill in cash
Proceeds sit outside the US estate
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Reviews on Google
Rated 4.8 out of 5 by returning families
4.8 average from 12 Google reviewsRead them on Google
August 2025
The personal stories, are realistic, positive and very valuable source for personal planning and decisions.
August 2025
Definitely recommend for anyone planning to make a move back to India
Showing 3 of 12
“Sorting out our US assets before moving back to India was our biggest anxiety. Understanding the estate tax exposure on non-US citizens and getting a term policy in place before leaving gave us complete peace of mind.”
Siddhartha J.
“Most NRIs have no idea about the $60,000 estate tax threshold once they lose US tax residency. Desi Return's guidance on using term insurance to cover the exposure while still in the US was invaluable.”
Jigar M.
“Very clear, practical advice. They keep on top of all tax rules affecting NRIs moving back — especially foreign asset exposure and protecting family wealth. Highly recommend doing this before you fly.”
S M.
FAQ
Questions people ask
BEYOND THE BILL
One insurance policy does not fix the whole picture.
A returning NRI has to think about RNOR timing, retirement accounts, and FEMA too. The Cross-Border Tax Planning route sequences all of it against your move date.
Educational overview, not tax advice, and not an insurance quote. US estate tax rules depend on your domicile, citizenship, and the assets you hold. Confirm the position for your situation with a qualified adviser before acting.