Brazil ITCMD and US Estate Tax: Different Systems

Brazilian ITCMD and US federal estate tax use different taxpayers, connections, valuations and exemptions. Exposure in both countries is possible, but double taxation is not inevitable for every estate. Do not infer a tax bill from nationality alone.

What differs?

Question	Brazil	United States
Main transfer tax	State or Federal District ITCMD on inheritance and gifts	Federal estate and gift tax, plus potentially state taxes
Starting facts	Relevant state, transfer, asset and parties’ connections	Citizenship/domicile, asset situs, prior gifts and year of death
Exemption	State-specific rules; no single nationwide personal exemption	Federal basic exclusion of $15 million for 2026 for citizens and domiciliaries, subject to the applicable rules
Foreign connection	Requires current jurisdiction and state-law analysis	Nonresident noncitizens use a distinct US-situs regime and filing rules

The IRS estate-tax page and 2026 Form 706 instructions confirm the 2026 amount. The earlier prediction that the exemption would halve in 2026 is obsolete. Filing can still be appropriate for elections even when no tax is due.

Is there treaty relief?

Brazil does not appear on the IRS income-tax treaty list or its estate and gift tax treaty list. This does not mean every estate pays tax twice. Applicable exclusions, deductions and any available unilateral credit must be assessed separately by advisers in each country.

How should the comparison be calculated?

Identify the date and type of transfer; determine each person’s citizenship, domicile and tax residence; list assets and prior gifts; establish the relevant Brazilian state; and obtain defensible valuations. Then calculate each country’s tax and reporting position before considering credits. The same headline percentage cannot simply be applied to every asset twice.

A company, trust, gift or insurance arrangement may change tax, control, reporting and succession consequences. It should be evaluated against keeping the present structure, including implementation and ongoing costs. No structure guarantees savings or removes all probate requirements.

What should a family do first?

Collect wills, trust deeds, title records, account beneficiary designations and prior gift records. Ask Brazilian and US advisers to define responsibilities and reconcile assumptions. Arrange an estate-planning scope review.

Correction, 3 October 2026: removed obsolete 2025-sunset advice, blanket statements that double taxation is unavoidable, and unsupported numerical outcomes. Editorial policy.