My father is a non-resident alien
(United Arab Emirates Citizen) who would like to transfer all of his assets
to me and my brother (we are both US
Citizens) upon his death according to his will. My mother is a US citizen. Both of my parents reside in Dubai, United Arab Emirates.
My Father was a green card holder, however in conversations with certain government
officials, because he has not used his green card or entered the country in 17 years, I am given to understand that the green card would be considered forfeited. He has not filed a US Tax Return
since he left the country 17 years ago.
The Only Assets he has are cash balances in bank totaling 6 Million Dollars. What would the tax treatment be assuming he is a non-resident alien? What if for some reason he is still considered to be a US Resident (Green Card Holder)?
What if my father were to send the money as a gift right now (before his death), what would be the tax implications? Are there any limitations
on the amount that can be given as a gift or is it unlimited? Is there a difference between sending the money as a gift as opposed to getting it through an inheritance
? Do I need any documentation to prove it’s a gift, such as letters etc. (***This issue is of utmost importance***)
Is there any incentive for my brother and I to open foreign
bank accounts and then transfer the money to the US versus a direct transfer from my father’s personal
accounts to our personal accounts in the US?
Would IRS form
number 3520 and form TD F- 90-22-1 suffice or are there other disclosures we must make upon filing
Please be as detailed as possible in your answer as I am a CPA as well and will be able to understand any complexities
that may be present. Thank you and I look forward to perhaps the beginning of a fruitful business relationship.