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There are no US estate or other tax consequences to you. He made a gift to you and that is a taxable gift under US gift tax rules. His estate would owe those gift taxes unless it uses part of his estates $5.25 million estate and gift tax exemption amount. US estate and gift taxes won't affect anything unless the estate size (plus the amount of the gift) are worth more than $5.25 million.
Thank you! I understand.
1. His estate is probably $20 million USD
2. The initial loan did come from his trust because all his funds are in this trust, but he forgave it while he was still living. Isn
Isn't the tax burden on his trust fro the gift, not against me?
Yes, the tax burden is on the trust, not you. You have no tax issues. His estate has those issues. As long as the gift was properly recorded and any changes were properly made to his trust (leaving you a devise/bequest) prior to his death, then the only thing you'll have to to is wait for his estate to resolve the US estate and gift tax (and other tax) matters prior to receiving any portion of his trust that he left for you.
Thank you very much!
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I will definitely. BTW, the rest of the bequest that comes to me after the gift is taxable to me and at what rate?
No, inheritance is not taxable as income under US laws.
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