Generally persons receiving gifts or inheritances are not taxable on the gift or inheritance. The donor or estate would be the one subject to estate or gift taxes. In this instance foreign persons or estates not domiciled or residing in the US are not subject on taxes for estates or gifts made while located in the foreign country. That being said, the US persons receiving foreign gifts or inheritances are subject to US reporting requirements. The US persons are required to report on form 3520 gifts or inheritaces of more than $100,000 a year. There are high penalties for failure to report.
