How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

I wil be receiving Money from a foreign estate, where ...

Resolved Question:

I will be receiving Money from a foreign estate, where no US Estate Tax has been paid. I assume that I will have to pay an Inheritance Tax. Is this correct and what would be the percent?
Submitted: 9 years ago.
Category: Tax
Expert:  Merlo replied 9 years ago.


Assuming that the person from the foreign country who left you this money was not a U.S. Citizen, then no US estate taxes would need to be paid.

Technically, there is no inheritance tax With an inheritance tax, your heirs pay a tax on the amount they receive. In today's world, the IRS gets their money before the heirs ever get their hands on it via the estate tax. In other words, the money being left to them is not being taxed twice. You would, of course, be subject to paying taxes on any income that you receive in the future as a result of this money being left to you (interest, gains on sale of stock, etc.)

If you found this answer helpful, please press the "accept" button. Positive feedback is also greatly appreciated.

Merlo and other Tax Specialists are ready to help you