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6 figure Inheritance money transferred from UK

6 figure Inheritance money transferred from UK

Old Dec 11th 2019, 6:26 pm
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Default 6 figure Inheritance money transferred from UK

Bless my poor family but they left me a 6 figure sum. Transferred to USA bank already via Wire.

What do I do for April 2020 Tax Season?

Is the money from my deceased family taxable? (It was of course taxed in the UK when the solicitor did all his work)

IRS Form to fill out?

Thanks in advance, great forum, sorry if this has been asked a thousand times but wanted to check as I know rules etc can change
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Old Dec 11th 2019, 7:22 pm
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Default Re: 6 figure Inheritance money transferred from UK

Originally Posted by houstonranger View Post
Bless my poor family but they left me a 6 figure sum. Transferred to USA bank already via Wire.

What do I do for April 2020 Tax Season?

Is the money from my deceased family taxable? (It was of course taxed in the UK when the solicitor did all his work)

IRS Form to fill out?

Thanks in advance, great forum, sorry if this has been asked a thousand times but wanted to check as I know rules etc can change
You need to fill in Form 3520 when you receive the money, then send it to the IRS. You most probably will not have to pay taxes on a 6 figure inheritance.
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Old Dec 11th 2019, 8:33 pm
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Default Re: 6 figure Inheritance money transferred from UK

I have posted this before, with regard to my experience with a similar inheritance; note that the filing of the 3520 isn't due until you do your annual taxes: When I received an inheritance, the Executor of the Estate wired it directly into my US account, in dollars, with no fees. If you do a search you will find a number of threads on the topic of inheritances, including the form to file with your US taxes, the 3520. (Don't worry, it is purely informational, no taxes will be levied!) I received a UK Revenue form R185 from the Executor, and was advised by him (an accountant) that the form showed my percentage of the net income during the administration period and the tax already deducted therefrom. He told me the total gross figure that I needed to declare on my US tax return and the amount of UK tax that had already been paid thereon that I also needed to indicate. I was to convert both figures into USD and he suggested that I use the exchange rate on the date on which the legacy funds were transferred to me.
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Old Dec 12th 2019, 6:59 am
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Default Re: 6 figure Inheritance money transferred from UK

The UK estate is a specified foreign financial asset whilst it is in administration. You'd report this asset on Form 8938. The distribution from the estate is reportable on Form 3520. If the relative died in 2018 or prior and Form 8938 was omitted the IRS offer several possible routes to catch up penalty free.
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Old Dec 12th 2019, 3:37 pm
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Default Re: 6 figure Inheritance money transferred from UK

Would the money come from the estates account to your US account, or to your UK account and than your US account? With that amount of money you will want to check if you trigger an FBAR filing requirement for money in a foreign bank account.
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