Inheritance

Old Sep 30th 2007, 11:39 pm
  #1  
Just Joined
Thread Starter
 
Joined: Jul 2006
Posts: 19
patbrit7 is an unknown quantity at this point
Default Inheritance

Has anyone in the U.S. inherited money from a relative in the U.K.? I'm wondering if I'll have to pay tax on it if I get it transferred over here.
patbrit7 is offline  
Old Oct 1st 2007, 12:39 am
  #2  
Account Closed
 
Joined: Aug 2004
Posts: 22,220
Rushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really niceRushman is just really nice
Default Re: Inheritance

Originally Posted by patbrit7 View Post
Has anyone in the U.S. inherited money from a relative in the U.K.? I'm wondering if I'll have to pay tax on it if I get it transferred over here.
Yes and I kept my mouth shut just incase and kept in in my UK bank account.
Rushman is offline  
Old Oct 1st 2007, 2:30 am
  #3  
The Duchess of Putney
 
Joined: Jan 2005
Location: HOME
Posts: 23,151
Elvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond repute
Default Re: Inheritance

Originally Posted by patbrit7 View Post
Has anyone in the U.S. inherited money from a relative in the U.K.? I'm wondering if I'll have to pay tax on it if I get it transferred over here.
AFAIK, no tax is payable to the IRS if inheritance tax was paid in the UK, or if none was due there.
Elvira is offline  
Old Oct 1st 2007, 2:42 am
  #4  
SUPER MODERATOR
 
Jerseygirl's Avatar
 
Joined: Dec 2005
Posts: 82,111
Jerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond repute
Default Re: Inheritance

Originally Posted by patbrit7 View Post
Has anyone in the U.S. inherited money from a relative in the U.K.? I'm wondering if I'll have to pay tax on it if I get it transferred over here.
Luckly (for them and me 'cos it means they're still alive) no...sadly I'll be inherting zip.
Jerseygirl is offline  
Old Oct 1st 2007, 3:04 pm
  #5  
Ray
 
Ray's Avatar
 
Joined: Mar 2003
Posts: 68,280
Ray has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond reputeRay has a reputation beyond repute
Default Re: Inheritance

When my Mum goes ..is their tax to be paid on hundred of pairs of shoes ...
Handbags by the caseful ... and unlimited supplies of towels and sheets,
Ray is offline  
Old Oct 1st 2007, 5:22 pm
  #6  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,725
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: Inheritance

depends if your a USC, greencard holder or just on a visa....and local taxes would depend on your state...
Bob is offline  
Old Oct 1st 2007, 6:00 pm
  #7  
Lost in BE Cyberspace
 
Joined: Jan 2006
Location: San Francisco
Posts: 10,156
Giantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond repute
Default Re: Inheritance

Originally Posted by Bob View Post
depends if your a USC, greencard holder or just on a visa....and local taxes would depend on your state...
The receipt of an inheritance? I don't think so. The estate is not relevant to US taxation given that it is "domiciled" in the UK:- inheritance taxes, if any, are paid by the estate not the recipient of the inheritance.
Giantaxe is offline  
Old Oct 1st 2007, 6:39 pm
  #8  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,725
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: Inheritance

Originally Posted by Giantaxe View Post
The receipt of an inheritance? I don't think so. The estate is not relevant to US taxation given that it is "domiciled" in the UK:- inheritance taxes, if any, are paid by the estate not the recipient of the inheritance.
If your not a USC, you don't get those benefits though...
Bob is offline  
Old Oct 1st 2007, 6:43 pm
  #9  
The Duchess of Putney
 
Joined: Jan 2005
Location: HOME
Posts: 23,151
Elvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond reputeElvira has a reputation beyond repute
Default Re: Inheritance

Originally Posted by Bob View Post
If your not a USC, you don't get those benefits though...
I believe you're wrong here, Bob.

Either that or our accountant is talking out of his
Elvira is offline  
Old Oct 1st 2007, 6:45 pm
  #10  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,725
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: Inheritance

Originally Posted by Elvira View Post
I believe you're wrong here, Bob.

Either that or our accountant is talking out of his
The way I understood it, if you weren't a US citizen and you got it, you didn't get that $2M free and it weren't the estate but you for getting the cash that stumped...but then again, that could have been a maine thing taking their fair share as a state.
Bob is offline  
Old Oct 1st 2007, 7:01 pm
  #11  
Lost in BE Cyberspace
 
Joined: Jan 2006
Location: San Francisco
Posts: 10,156
Giantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond repute
Default Re: Inheritance

Originally Posted by Bob View Post
The way I understood it, if you weren't a US citizen and you got it, you didn't get that $2M free and it weren't the estate but you for getting the cash that stumped...but then again, that could have been a maine thing taking their fair share as a state.
You are talking about the reverse situation, where the estate is that of a person subject to US tax and the recipient is a non-citizen spouse. And even in that case, the first $2m (or whatever it is this year) avoids estate tax. The difference is that a non-citizen spouse does not get the unlimited marital deduction that a US citizen spouse does. Here's an explanation:

http://www.investorguide.com/igu-art...tax-traps.html
Giantaxe is offline  
Old Oct 10th 2007, 1:08 am
  #12  
Just Joined
Thread Starter
 
Joined: Jul 2006
Posts: 19
patbrit7 is an unknown quantity at this point
Default Re: Inheritance

Thanks for all the info. I'm a green card holder by the way, and the inheritance from my British family.
patbrit7 is offline  
Old Oct 10th 2007, 2:54 am
  #13  
JAJ
Retired
 
JAJ's Avatar
 
Joined: Apr 2004
Posts: 34,649
JAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond reputeJAJ has a reputation beyond repute
Default Re: Inheritance

Originally Posted by patbrit7 View Post
Thanks for all the info. I'm a green card holder by the way, and the inheritance from my British family.
As far as I know, U.S. law taxes the estate, not the recipient.

You still need to consider:
- the U.S. capital gains tax position on future disposals of the asset; and
- British Inheritance Tax will apply to the estate
JAJ is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.