markaspden

Good evening,
My sister recently sold my moms house and I need to bring the money over to the USA.
Anyone have any experience, best way and I don't have to pay taxes do I this is inheritance.
Should I just use my bank or a company like transferwise

Pulaski

If, per the tag under your username, you live in Alabama, then you are correct - there is no inheritance tax to pay. There are currently, I believe six states that levy an inheritance tax.

It may be cheapest to use an FX broker-remitter, but if you're talking about a six figure sum then you might do as well, or even better, to ask for a "dealing desk quote" from your bank.

Also contact your bank in the US and tell them that you're expecting a wire of approximately $x,000 from the sale of your mother's house, and ask the bank to note that information in your file (electronic file, these days). Use similar wording in the memo field of the transfer/wire whether you use a broker or your bank. Banks do not like surprise credit, especially from overseas, and if they are in the slightest concerned about such a credit they won't hesitate to report it to the national agency for such things (FinCEN).

If the money is routed through your bank account in the UK, no matter how briefly, you will have to report the account under FBAR.

markaspden

Yes thanks Alabama, looking at only 5 figures only selling to pay for college

Cherrysoda

Pulaski...do you know if California is one of those states? We need to sell a flat at some point but may not if we get double taxed in the uk and USA. Need to researched....we never thought we would stay here long term or we would have sold up when we left 7 years ago.

Pulaski

California doesn't have an inheritance tax. ..... You could have Googled <US states with inheritance tax> .... You're welcome.

That said, you pay inheritance tax when you inherit something, not when you sell something you inherit, so you would have had a problem if you lived in a state with an inheritance tax and hadn't paid up.

Cherrysoda

Thanks Pulaski. You are faster than Google because I am on a Google with a rubbish keyboard))

Cherrysoda

I am on a kindle.

Pulaski

I am on my phone - 99.99% of my last 24,000 posts have been made using a Motorola or Samsung phone.

Cherrysoda

Well Pulaski you bought the right car and the right device then. Try typing with a kindle and a jeep.) Whilst having a migraine. You can ask me questions I can answer and I will. Or you can Google.)

Cook_County

According to the Ninth Circuit Transferwise would be FBAR reportable. An inheritance gets reported to the IRS on Form 3520. You might also have a currency gain or loss to report to the IRS depending on when the transactions took place...