Hi all
I am a dual citizen (UK born and bred) moving to US 2005. It's nearly 20 years already wow! I have been doing my taxes in the US ever since.

I am inheriting a variety of items from my late father and while I am aware I need professional advice (recommendations accepted), I am looking for some guidance from those that have been there, done that. These investments etc. were all initiated in the UK. I have 3 brothers, of which 2 are accountants. These two are leading the effort (with other professional) and have received probate. However, none of them are UK/US tax experts.

First, there are some discretionary trust money that has matured. I understand I would just need to report this with my US taxes. I believe reporting is for items over $100k on IRS form 3520.

Second, is property that is being transferred into 4 names (me being one, the other 3 are UK based) from which a small amount of income will result. Question #1, how complicated is it to transfer UK assets to me (as one of 4 people) when I don't reside in the UK? I do have a UK current account still.

Question #2... I am right thinking I'll pay UK tax on this income and have to file a UK tax return, each year? Question #3, what rate would I likely pay?
We are looking to sell this property towards the end of 2025 and split the proceeds 4 ways. Yes, there may be a small amount of capital gains, but there will be a chunk of money coming my way. Question #4 again, will this just need reporting via IRS 3520?

Question #5 is linked to other assets that are within a separate pension fund. At some point in the future, I will be able to draw money from this, for arguments sake £30k pa. Will I just be taxed JUST in the UK for this? At what rate?

I don't really want to move back to the UK (the wife does though) so were just getting some perspective on our financial situation.

Thanks for reading and replying!

On the trust, it likely is a foreign non grantor trust which will mean that you need to pay tax on the distributions. The income is taxed as ordinary income which means it will be at your highest marginal tax rate. There may also be what is called a throwback tax. This thread should help you get started on researching those issues. UK Inheritance. Unfortunately although an overseas inheritance is generally tax free in the US, any distributions from a foreign grantor trust are taxed, and putting assets into such a trust makes them taxable by the IRS. Of course, only the US beneficiaries will be subject to the tax.

On income from foreign property, you are required to report and pay tax to the IRS (and state) on all foreign income so you need to report that on your US tax return. The UK will have the first right to tax income from a UK based property, but you must still report this income on your US return. If the UK tax is higher than the US tax then there is nothing more to pay to the IRS (but no refund), if the US tax is higher then you have to pay the difference. No requirement for Form 3520. Upon the sale of the UK property you will have to report it to the UK and pay UK and US capital gains taxes, again if the US taxes are higher than the UK you only have to pay the difference. This link might help. Inheriting Property Abroad - Tax implications

On the UK pension that will be taxed by the IRS not the UK. You need to get a No Tax code, NT, from HMRC when the time comes. This link might help.UK State Pension and US tax return

The distribution from the trust is not an inheritance. You will want to ask the trustees to provide you with what is called a "foreign non grantor trust beneficiary statement" so that you can complete Form 3520 accurately.

The UK estate is a specified foreign financial asset, so is reported on Form 8938. Distributions from the estate over $100,000 are reported on Form 3520.

UK real property gets a step up in basis to market value on the date of death for both US and UK tax purposes -ie UK probate value. When sold you will be filing a UK PPD return within 60 days of sale and paying any UK CGT to HMRC within the same 60 days.

Pension income is solely taxed by the US. The UK pension plan will already be reported on your annual FBAR and Form 8938.