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Merlo
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I am a swedish citizen with greencard since 73. I have a

Resolved Question:

I am a swedish citizen with greencard since '73.
I have a relative wishing to send me inheritance via an account in Switzerland.
The amount is close to but under one million dollars.
Question # XXXXX: Am I obliged to pay any taxes on inheritance (ceiling amount)?
Question @ 2: Are there rules/taxes if I were to share any of these moneys with other relatives living abroad?
Thank you!
Submitted: 4 years ago.
Category: Tax
Expert:  Merlo replied 4 years ago.

Hello fran,

 

Are you currently residing in the US?

 

 

Expert:  Merlo replied 4 years ago.

Fran,

 

You posted a new question telling me you live in NY state. I have closed that question because it is a duplicate. You need to keep your responses here in this same question thread.

 

You will not owe any taxes on this money, regardless of how much you receive. The US does not impose any inheritance taxes. Estate taxes apply in some cases depending on the year the decedent died and the value of his estate, but this only applies to US citizens and does not apply to someone who is not a citizen or resident of this country.

 

If someone is sending this money here to the US, you need to file Form 3520 with the IRS to report the amount you receive. This is required any time that you receive a gift or inheritance from a foreign source which exceeds $100,000 for the year. There would be no tax due with the filing of this form. It is simply required for informational purposes only.

 

If the money is not coming to this country but instead being left in a Swiss bank account, then each year that you maintain a foreign bank account which reaches a balance of $10,000 or more during the year, you must report the existence of that account to the IRS by filing form TDF 90-22.1. Again, there is no tax due with this form, but it must be filed annually in any year that you maintain a foreign bank account with a balance of $10,000 or more.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you fran

 

 

Customer: replied 4 years ago.
Thank You
for the info re: my recieving money from a relative outside the US from a Swiss bank.
I understand that I will need to file tax form 3520 when the money comes to my account.
The second part of my question was:
Can I send parts of this money abroad to other relatives I'd like to share the money with?
Are there any declarations that I need to be aware of regarding sending fractions of this money to relatives in Sweden?
Expert:  Merlo replied 4 years ago.

Hello fran,

 

If you are a US resident alien, then once you receive this money if you plan to give some to other people, whether it be someone here in the US or someone overseas, you must report any gift that you give which exceeds the amount of $13,000 to any one individual in the same year. Gifts below this amount do not need to be reported.

 

So if you give any one person an amount of more than $13,000 for the year, you would need to file Form 709 with the IRS to report the gift you gave. You would owe no gift taxes until such time as you had used up your lifetime exemption on gifts, which is currently $1 million.

 

If this was helpful please press the Accept button. It is the only way we receive credit for helping with these questions.

 

Thank you

 

 



Edited by Merlo on 2/1/2010 at 9:43 PM EST
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Merlo
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25+ years tax consulting. Specializing in returns for US citizens living abroad