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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 14007
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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My Mother who was 84 passed away in April of 2013. She had

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My Mother who was 84 passed away in April of 2013. She had a decent size portfolio/investment of about $2 million with a Bank in London while she was alive. This investment was passed over to her by my Father who passed away about 11 years ago. My Mother's portfolio which is made up of foreign and domestic securities was subsequently transferred over to Merrill Lynch in the U.States in May while she was alive. The reason for the transfer was because she thought since 3 of her four children were U.S.Citizens and one was a legal Permanent Resident, it may be easier to disburse her portfolio to them. Just few weeks after the account was set up in her name with Merrill Lynch, she had a heart attack and passed away. So her account was subsequently made inactive after we informed Merrill Lynch of her death few months ago. I am one of her two executors of her Will and on her Will, she stated that her portfolio be split equally among her four children. Merrill Lynch has sent me some requirements/forms to complete. My Mother was a citizen of Sierra Leone in West Africa and has never worked in the U.States. But one of my sisters filed for her about 10 years ago to become a Permanent resident. She had a Social security Number, but has never filed taxes in the United States since she never worked in the U.states. She visited once a year for about 2 months, but has not visited for the last four years due to poor health . One of the requirements requested by Merrill Lynch for them to transfer her portfolio to us the beneficiaries is a Federal Transfer certificate which is required when the deceased is a U.S.citizen living overseas. They also requested a copy of her Will, letter of Authorization from her executor explaining how and where to disburse her assets with them. We have all the other requirements except for the Federal Transfer certificate which from my research is IRS form 706-NA. This form looks like a tax form and is asking for some tax information which we do not have as she has never filed taxes in the U.States. First question is does this form 706-NA apply to our situation, and if so, what type of professional (Tax attorney maybe) do we need to complete this form if applicable. Would she owe taxes on her portfolio? Can this form be completed by a non-tax professional?
Submitted: 1 year ago.
Category: Tax
Expert:  Megan C replied 1 year ago.

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

I'm truly sorry to hear about your loss.

MyVirtualCPA :

Form 706-NA is not the transfer certificate. The transfer certificate is IRS form 5173

MyVirtualCPA :

"Transfer Certificate" (IRS Form 5173) is received from the Internal Revenue Service. Executors, surviving joint tenants, trust beneficiaries or other persons legally entitled to receive the decedent's assets can request and obtain the Transfer Certificate from the


IRS SB/SE Estate Tax Group 1205,XXXXX, N.E. (UCP-CNN-730), Washington, DCNNN-NN-NNNN U.S.A.; telephone:(NNN) NNN-NNNN fax:(NNN) NNN-NNNN



Customers will likely be asked to provide the IRS with copies of the estate tax return and


corroborating documentation. In addition, the IRS will typically require copies of the decedent's last will and testament and codicils thereto, if any, with English translations if appropriate, as well as copies of any death or inheritance tax returns and corrective


statements filed with a tax or regulatory authority outside the U.S., and a copy of the decedent's death certificate.



Use the IRS contact information supplied above so you can be assisted with the documentation required. The IRS will then be able to advise you what if anything you need to send them so Merrill can release the funds.

MyVirtualCPA :

Form 706-NA is the estate tax return that you would need to fill out -you will need this in addition to the transfer certificate mentioned above.

MyVirtualCPA :

Your mother will owe estate taxes on her US securities, and this is true whether or not she placed those securities in the US or not. I would definitely have a tax professional handle all this for you, as it is a very complex area of tax. I could not tell you how much she would owe, because to tell you that I would need to complete the forms for you.

MyVirtualCPA :

You don't have to have an attorney - you can use a CPA or EA to do the same.

MyVirtualCPA :

More information on this topic can be found, here: http://www.irs.gov/Individuals/International-Taxpayers/Some-Nonresidents-with-U.S.-Assets-Must-File-Estate-Tax-Returns

MyVirtualCPA :

Do you have any further questions? If not, please rate my response as "excellent" so that I may receive credit for assisting you today. If so, please respond below

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 14007
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 2 other Tax Specialists are ready to help you
Expert:  Megan C replied 1 year ago.
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