Wealthy families in India are increasingly worried about the 40% US inheritance tax on stock investments that exceed $60,000, prompting them to seek ways to protect their heirs from this financial burden. Many are exploring options such as creating offshore trusts or purchasing insurance wrappers to mitigate tax liabilities. However, the complex regulatory landscape poses challenges, particularly for resident Indians who cannot gift US stocks to their NRI children under the liberalised remittance scheme (LRS). Legal experts warn that some strategies may violate the Foreign Exchange Management Act (FEMA), complicating wealth transfer. Additionally, families are considering restructuring their holdings into institutional or trust-like entities to comply with regulations. As the September 30 deadline for the US EB-5 visa approaches, many are selling foreign stocks to fund their NRI children's applications, but the lack of regulatory clarity regarding direct gifting of proceeds adds to the complexity. The situation highlights the need for careful planning to navigate cross-border wealth management and compliance.