My brother and I will be receiving an inheritance from our father's estate, who passed away earlier this year. The catch is that while the money will be coming to the US, he lived and died in Chile. The estate is worth over 10k but is well under 1million dollars US. Is any of this taxable? And even if it is not, is it legal for a bank to accept a transfer of funds in the tens of thousands of dollars from an international source?
Many Thanks,
-J
1 Answer from Attorneys
Generally funds from an inheritance are not taxable. However, depending on how the transaction is being handled, there could be taxable income to a beneficiary. You will definitely want to have a tax professional review the transaction.
When dealing with international funds, there may also be reporting requirements with the IRS whether or not the funds are taxable. Failure to report foreign income and/or assets can result in very large penalties and one should be very cautious here.
Good luck to you. Let me know if you would like to schedule a meeting to review your situation.
This posting should not be considered legal or tax advice.
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