I should receive an inheritance of around $150,000 from the UK in 2025. How do I to transfer to meet IRS requirements. Acct is in my UK domiciled sister's name ?

[davies4444]

I am no longer UK domiciled , hence cannot be named on the UK estate account. I am US Citizen and US domiciled

[pk]

@davies4444 

 ( a) are you a US person ( citizen/ GreenCard/ Resident for tax purposes ) ?

(b)  Is this inheritance in cash/liquid or  in some asset form to be disposed by you before transferring to the USA ?

(c)   Is the account ( ref'd in your post ) a joint i.e.  you have signatory powers over or solely owned / operated by your sister and no connection to you ?

(d)  To keep things simple,  you do not want to create a donor/donee relations in this transaction.

(e)  Absent anything concerning in your response to my questions, the best  situation would be for the  estate of the decedent to wire the monies to your  US bank account.   This would mean you may have to  report the  amount on form 3520  ( gift/inheritanmce => than 100,000 from an estate ) -- there is no tax consequence ..

If you do choose to open a bank account in the UK  then this amount of money  would bring you   under FBAR and/or FATCA regulations -- again no tax consequence.

I will circle back once I hear from you.

[davies4444 · Accepted solution]

Thanks a lot for replying PK. 

1. Yes I am a US Citizen and resident for tax purposes. I have dual US and UK citizenship but not been domiciled in the UK since 1976/1977. I have been resident in USA since 1991.

2. The inheritance will eventually be all cash after disposition of my father's estate into an account that has been set up in my sisters name. She is a UK resident. The bank indicated my name could not be included on the account since I am not UK domiciled.

3. As per above the estate account in UK has my sister as sole signatory.

4. So once the estate is finally settled into the estate account the intention is to wire transfer the final amount of cash shared to me into my US Checking account.

5. So as I understand it I would need to submit a Form 3520 to IRS / upon transfer/ receipt hof the inheritance but no other FBAR / FATCA related forms needed at that time since I was never a signatory / owner on the estate account.