Hello and thank you for using Just Answer
Currency gains of $200 or less that arise from personal transactions (not for investment or business) are not taxable and losses are not deductible.
If this does not cover your interest please be specific when you reply before you click accept.
If the amount is over $100,000 US and you are a US person (citizen or resident alien) then you must file Form 3520 to report the bequest. You will also need to report the foreign accounts if they have over $10,000 in them at anytime during the tax year.
You may also be required to file the new form 8938 (which unlike the FBAR 90-22.1 is filed with the tax return).
Leaving it or exchanging is up to you but the reporting will be mandatory if you leave the accounts open in the foreign countries.
If you have the amounts exchanged and moved to the US through your bank then you will not have a taxable event. If you bring the currency to the US on your own and later exchange you will be placed under the taxation I advised in my first post if the amount of the exchange rate is more than $200.
I advised what you are required to do because of the fact that you grandmother was not a US person. Whether or not you bring that currency to the US you may have reporting requirements based on the amounts in the accounts.
You asked should I bring the foreign currency to the US and I said if you do and then exchange for US dollars, if you have a gain the gain will be taxable to you if more than $200.
If you do not exchange for US dollars then you do not have a taxable event but you still have to report the inheritance using Form 3520 is you inherited more than $100,000.
I nor any other expert is allowed to advise you on what you should do with the money. We can only tell you what could be your tax consequence of the action you decide to take.
There are no tax consequences of bringing the funds to the US. The US does not tax inheritances from foreign persons.
As for reporting requirements, those are properly stated. If over $100K, you must report it. If you continue to have foreign accounts, those must be reported.
Any gain such as interest on the accounts is taxable in the US regardless of where the money is.
Summary: No tax consequences. In fact, keeping the money abroad will result in more reporting requirements on a yearly basis. This reporting requirements are informational and not for tax purposes.