Inheritance from a non-US citizen

[Teddy Ho]

My grandfather recently passed away, and I have inherited more than100,000 dollars. The money will be transferred to an overseas bank account, and which I plan to transfer it back to the US. what are the precautions to take regarding this matter? Does Form 3520 apply in this situation?

I am also currently residing in the state of Nebraska, does the inheritance tax apply?

[Anonymous_]

I'll page @pk

The Nebraska inheritance tax would not be applicable in this instance unless your grandfather owned real estate in that state or lived there when he passed away (which is clearly not the case).

[pk · Accepted solution]

@Teddy Ho , US generally does not have an inheritance law -- it accomplishes something similar through Gift/Estate tax.

As mentioned by @Anonymous_ , since the decedent was not a US person and the assets in his estate were not US based, the US Estate tax laws do not apply  ( I am assuming here that he was never a US person -- a visitor or otherwise long enough present  in the US to qualify for SPT   -- a Resident for Tax purposes(. 

Therefore , you as a  US person ( citizen / GreenCard / Resident for Tax purposes ) at the time of bequeathal   need only recognize the  inheritance  by filing a form 3520  ( Please look at the instructions for the form 3520 and address to where this must be sent -- it does not have to go with your return for the tax year ).

Another point to note is that if the monies  ( >US$10,000 at any time in the tax year ) rests in a foreign bank account that you own or have signature authority over, you come under the rules of FBAR  ( form 114 at  www.FinCen.gov and only on-line filing ) and  FATCA ( form 8938  along with your  tax return  for the year ).

Does this help ?  Is there more I can do for you  ?

Please accept my heartfelt sorrow at your loss

pk

[Teddy Ho]

Thanks for your condolences and prompt response.

You've been very helpful, thank you.