Is international inheritance taxable in the US? 3 Answers as of June 11, 2013I will be receiving an inheritance from my father who passed away in Chile. His estate is under a million dollars and is valued around $150,000. Will this be taxable? What about through a transfer of funds? Would it pay to retain an attorney? Thanks.
Mankus & Marchan, LTD | Tony Mankus
The US has no inheritance tax. Any money you inherit is not subject to US tax. There is, however, estate tax. The estate of a resident of the US has to pay tax on the value of the estate - beyond the allowable exemption. If your dad was not a US resident, there is no US tax to his estate. However, Chile may or may not have estate tax and/or inheritance tax. You need to check with an attorney in Chile.
Answer Applies to: Illinois
Givner & Kaye | Bruce Givner
An inheritance is not taxable income. And the beneficiary of an estate is not (normally) subject to the estate tax. If the decedent was not a U.S. resident or citizen, then it is unlikely that any U.S. estate tax would be due. Given the size of the estate an estate tax is EXTREMELY unlikely. You should discuss this with the CPA who prepares your income tax return. Perhaps the facts will indicate that there is an obligation to file an IRS Form 3520.
Answer Applies to: California