Estate tax and inheritance: what happens to your US lot if you die
Nobody buys land thinking about this, but it is what reassures a family most: knowing the lot passes to the heirs without a long court case. Here is how it works in the US and in Arkansas.
By Francisco Cortés Santolalla 5 min read
What happens to my US land if I die?
The lot is not lost: it passes to your heirs. What changes is the path. With a recorded beneficiary deed, it passes almost at once; without one, your heirs need a court process in Arkansas.
The warranty deed is in your name and recorded in Fulton County, as described in the purchase documentation. That deed is what your heirs inherit. The sections below cover the taxes and the two possible paths. The taxes of owning the lot during your life are in when a lot owner needs an ITIN.
Is there an estate tax for nonresident aliens?
Yes. The US levies estate tax on nonresident aliens' assets located there, including real estate. But a return is only required if those assets exceed USD 60,000 at the date of death.
According to the IRS, the return is filed on Form 706-NA when the value of US assets exceeds USD 60,000. A USD 15,000 lot is well below that threshold, unless you hold other US assets.
The chart compares the threshold with the price of a lot. If you also hold US accounts, shares or other property, it all adds up, so check with an accountant.
No estate tax treaty with Chile, Argentina or Brazil
The US has estate tax treaties with about 15 countries, mostly in Europe, and neither Chile, Argentina nor Brazil is on the list.
The list is on the IRS estate and gift tax treaties page. Without a treaty, each country's general rules apply, and tax may be due on both sides. That is why it helps to know your home country's rules too, summarized further down.
Probate, and why it is worth avoiding
Probate is the US court process that confirms who the heirs are before assets are transferred to them. For Arkansas real estate it happens in Arkansas, with a local attorney, even if the family lives abroad.
For small estates, Arkansas law allows a simplified procedure with a sworn statement (small estate affidavit) when the property is worth up to USD 100,000. Even so, there are papers, deadlines and costs your family would have to handle from abroad. That is why there is a simpler alternative: the beneficiary deed.
What is a beneficiary deed in Arkansas?
It is a deed naming who receives the lot when you die. While you live, the lot stays yours and you can revoke it. To work, it must be recorded in the county before the owner's death.
The rule is in the Arkansas beneficiary deed statute: you can name one or more beneficiaries and successors, revoke it at any time, and a will cannot change it. If you sign more than one, the last one signed before death controls.
Beneficiary deed recorded
No beneficiary deed
The diagram shows both paths. If you would like one recorded, ask us when you receive your deed and we will arrange it with the project attorney (procedure and cost to be confirmed).
What if I die before finishing the 24 payments?
While you pay in instalments, the lot is not yet deeded to you: you hold a promise of sale. What happens to it if you die is set by the contract (to be confirmed with the promise of sale terms).
It is a fair question to ask before signing, and we will answer it in writing. Raise it on a video call with the team and see how the payment plans work. If you pay cash, the deed arrives in about a month and the question does not arise.
Will my heirs owe inheritance tax at home?
Possibly. In Chile, the estate of someone domiciled there includes assets abroad. Argentina has no national inheritance tax, but Buenos Aires province charges one. In Brazil, the tax is set by each state (ITCMD).
The table sums up the rules with their official source. They are starting points, not advice: exemptions and rates change and depend on where each heir lives.
| Country | General rule | Source |
|---|---|---|
| Chile | National inheritance tax (Law 16,271): assets abroad are included in the estate inventory | SII |
| Argentina | No national tax; Buenos Aires province taxes gratuitous transfers to beneficiaries domiciled there | Law 14,044 (PBA) |
| Brazil | State ITCMD; Complementary Law 227/2026 set rules for cases with assets or people abroad | LC 227/2026 |
More context in our guides for buying from Chile and buying from Brazil.
An LLC or a trust: when it makes sense
Some buyers ask whether to buy through an LLC or a trust to make inheritance simpler. It can make sense in some cases, but it changes taxes, costs and paperwork, and for a USD 15,000 lot it is usually more than you need. A beneficiary deed covers the essentials with a single document.
If you still prefer an LLC, it is handled separately with the project attorney. Note that Arkansas Act 811 of 2025 bars companies controlled by people from certain countries from buying land. More in the FAQ, and see the land for sale.
Frequently asked questions
Do my heirs have to travel to the US?
With a recorded beneficiary deed, the lot passes without a court case: it usually comes down to filing documents in the county. Without one, probate takes place in Arkansas with a local attorney.
Can I change the beneficiary later?
Yes. You can revoke the beneficiary deed or sign a new one; the last one signed before death controls, as long as it is recorded.
Does a will from my home country cover the lot?
It can, but in Arkansas it would have to go through probate. A will also cannot change a beneficiary deed that is already recorded.
How much estate tax does a USD 15,000 lot owe?
In the US, a return is only required if your US assets exceed USD 60,000. At home, it depends on your country's rules.
Updated October 10, 2026
