Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Inheritance Tax

Inheritance Tax

Old May 9th 2019, 12:16 pm
  #1  
BE Enthusiast
Thread Starter
 
Joined: Jan 2016
Posts: 353
PetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond repute
Default Inheritance Tax

Hi all,

I spoke with my Mum yesterday who mentioned she chatted to her financial advisor about inheritance tax for yearly gifts she sends to me and my wife if she passes within 7 years. The amounts are not huge, but also not insignificant (think 5 figures).

If she passes, will HMRC collect the tax owed from her estate or me through the IRS?

Tx,

H
PetrifiedExPat is offline  
Old May 9th 2019, 1:27 pm
  #2  
Concierge
 
Rete's Avatar
 
Joined: Apr 2001
Posts: 42,408
Rete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond repute
Default Re: Inheritance Tax

How can HMRC, a British agency collect through a US agency - IRS?
Rete is offline  
Old May 9th 2019, 1:29 pm
  #3  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,052
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Inheritance Tax

HMRC will collect any tax owed from her estate. The executor should complete the relevant IHT form. It is a simple enough form to understand.

https://www.gov.uk/government/public...on-iht205-2011

durham_lad is offline  
Old May 9th 2019, 1:32 pm
  #4  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,052
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Inheritance Tax

Originally Posted by Rete View Post
How can HMRC, a British agency collect through a US agency - IRS?
suppose taxes were owed on £100k, then when her house and property are sold the taxes will be collected by HMRC on the proceeds of the sale before they are distributed to her heirs.
durham_lad is offline  
Old May 9th 2019, 1:37 pm
  #5  
Concierge
 
Rete's Avatar
 
Joined: Apr 2001
Posts: 42,408
Rete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond repute
Default Re: Inheritance Tax

Originally Posted by durham_lad View Post

suppose taxes were owed on £100k, then when her house and property are sold the taxes will be collected by HMRC on the proceeds of the sale before they are distributed to her heirs.
Are you telling me that HMRC will then turn the taxes paid over to the IRS?
Rete is offline  
Old May 9th 2019, 2:23 pm
  #6  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,052
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Inheritance Tax

Originally Posted by Rete View Post
Are you telling me that HMRC will then turn the taxes paid over to the IRS?
Why would they? unless I have misunderstood the op the mother lives in the UK so any taxes she pays including inheritance tax is due to HMRC not to the IRS.

The op is asking if HMRC will come after him in the USA for any taxes due on the money he was gifted during his mother’s lifetime (the last 7 years of her life)


durham_lad is offline  
Old May 9th 2019, 2:53 pm
  #7  
Concierge
 
Rete's Avatar
 
Joined: Apr 2001
Posts: 42,408
Rete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond repute
Default Re: Inheritance Tax

Originally Posted by durham_lad View Post

Why would they? unless I have misunderstood the op the mother lives in the UK so any taxes she pays including inheritance tax is due to HMRC not to the IRS.

The op is asking if HMRC will come after him in the USA for any taxes due on the money he was gifted during his mother’s lifetime (the last 7 years of her life)



Then why are you inferring that my original statement was incorrect? see post #2 Man, you are confusing me.
Rete is offline  
Old May 9th 2019, 3:13 pm
  #8  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,052
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: Inheritance Tax

Originally Posted by Rete View Post
Then why are you inferring that my original statement was incorrect? see post #2 Man, you are confusing me.
Originally Posted by Rete View Post
How can HMRC, a British agency collect through a US agency - IRS?

sorry, I misunderstood as post 2 was a question not a statement.

You didn’t explain how HMRC would collect the tax, so mistakenly I took your question to be asking how the taxes would be collected.
durham_lad is offline  
Old May 9th 2019, 3:15 pm
  #9  
Concierge
 
Rete's Avatar
 
Joined: Apr 2001
Posts: 42,408
Rete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond reputeRete has a reputation beyond repute
Default Re: Inheritance Tax

Originally Posted by durham_lad View Post




sorry, I misunderstood as post 2 was a question not at statement.

You didn’t explain how HMRC would collect the tax, so mistakenly I took your question to be asking how the taxes would be collected.
Have to start using the similie
Rete is offline  
Old May 9th 2019, 4:01 pm
  #10  
BE Forum Addict
 
Joined: Aug 2013
Location: Athens GA
Posts: 1,744
MidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond repute
Default Re: Inheritance Tax

Originally Posted by PetrifiedExPat View Post
Hi all,

I spoke with my Mum yesterday who mentioned she chatted to her financial advisor about inheritance tax for yearly gifts she sends to me and my wife if she passes within 7 years. The amounts are not huge, but also not insignificant (think 5 figures).

If she passes, will HMRC collect the tax owed from her estate or me through the IRS?

Tx,

H
Not what you asked, but you should also consider the need to report receipt of the gifts to the IRS: https://www.irs.gov/businesses/gifts...foreign-person
MidAtlantic is offline  
Old May 9th 2019, 5:49 pm
  #11  
BE Enthusiast
Thread Starter
 
Joined: Jan 2016
Posts: 353
PetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond reputePetrifiedExPat has a reputation beyond repute
Default Re: Inheritance Tax

Thank you, all.

No need to report for me, its not enough!

OK, it seems like the estate pays, which is fine.
PetrifiedExPat 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

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