The real problem is, if you were hit by a truck tomorrow, who would give the money to your niece/nephew?
It's better to sign a promisory note (debt note) saying you borrowed this money from your brother and if you die the money goes back to him or his kids.
The same promisory note can be used to show IRS that you didn't earn this money, in case they are checking on you.
$700K is a lot of money, you guys are so careless.
Another problem is that estate tax for foreigners starts at $60K. Anything over $60K is subject to 40% estate tax. Think it over.
我想问问promisory note 在哪里办？我哥在国内，可以远程办吗？
还想问问estate tax for foreigners 40%是怎么回事？如果房子100万，他要交40万的税吗？是交易税还是每年的税？谢谢！
1. promissory note
You can google online for a PDF, fill out the numbers and sign it with a local notary and mail to your brother. In case you die, your brother can rely on this note to participate the division of your estate (遗产)
2., estate tax = 遗产税
Assuming your brother or his kids are not green card or US citizen, just foreign nationals. If they own the house and if they die, the house is their estate (遗产), only 60K is exempt from estate tax of 40%.
The exemption for US persons are 5.5 million, but the exemption of estate tax for foreigner is only $60K. So if the house is 1 mil, $940,000 are subject to 40% estate tax.
It is probably worth it to have consult an estate lawyer before buying a house in US.
2. 我哥买房的交易税和以后每年的地产税会很高吗？ 或者说会不会比禄卡公民的高？
"Generally, nonresident aliens are subject to gift tax only on transfers of real or tangible personal property situated in the U.S. Thus, gifts of intangible property by a nonresident alien are generally exempt from gift tax. Property that is not considered intangible property (thus subject to gift tax) at the time of the transfer includes: (i) real property within the U.S., (ii) tangible personal property situated within the U.S. and (iii) U.S or foreign currency or cash within the U.S. As mentioned earlier, it is important to note that situs rules differ between the gift and estate tax laws. For example, a gift of cash on deposit in a U.S bank is tangible personal property for gift tax purposes but not for estate tax purposes. Furthermore, the gift of stock in a domestic corporation is an intangible asset exempt from gift tax, but that same stock if transferred at death (by will or intestacy) would be subject to estate tax."