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Where Taxpayers and Advisers Meet

Inheritance from Familly member in the USA to a UK resident

nicey1958
Posts:5
Joined:Sat Mar 16, 2024 8:30 pm
Inheritance from Familly member in the USA to a UK resident

Postby nicey1958 » Sat Mar 16, 2024 8:43 pm

Hi, What are the rules for Inheritance of a deceased in-law who has accounts/money tied up in IRA's, roth IRA's and some accounts that are now in Probate? Are there any pitfalls we should be aware of? The will states that all estate be split equally between the Deceased Immediate family. . I heard that IRA's are complicated and can be heavily taxed?
Thanks you
.

nicey1958
Posts:5
Joined:Sat Mar 16, 2024 8:30 pm

Re: Inheritance from Familly member in the USA to a UK resident

Postby nicey1958 » Thu Mar 21, 2024 11:12 am

no one?
cheers.

AGoodman
Posts:1767
Joined:Fri May 16, 2014 3:47 pm

Re: Inheritance from Familly member in the USA to a UK resident

Postby AGoodman » Thu Mar 21, 2024 3:24 pm

You're looking for advice on the UK tax treatment of US pension accounts. It's very niche.

In general, inheritance tax is only paid by the estate if the deceased was domiciled or deemed domiciled in the UK or the assets were in the UK. It isn't paid by beneficiaries of the estate unless they received large lifetime gifts.

Whether there are any other taxes (US or UK) involved in winding up IRAs is, as I said very niche. You will need to look for a specialist UK/US tax adviser or accountant. There should be plenty on google.

nicey1958
Posts:5
Joined:Sat Mar 16, 2024 8:30 pm

Re: Inheritance from Familly member in the USA to a UK resident

Postby nicey1958 » Fri Mar 22, 2024 11:24 am

TY will do.

nicey1958
Posts:5
Joined:Sat Mar 16, 2024 8:30 pm

Re: Inheritance from Familly member in the USA to a UK resident

Postby nicey1958 » Fri Mar 22, 2024 11:29 am

You're looking for advice on the UK tax treatment of US pension accounts. It's very niche.

In general, inheritance tax is only paid by the estate if the deceased was domiciled or deemed domiciled in the UK or the assets were in the UK. It isn't paid by beneficiaries of the estate unless they received large lifetime gifts.

Whether there are any other taxes (US or UK) involved in winding up IRAs is, as I said very niche. You will need to look for a specialist UK/US tax adviser or accountant. There should be plenty on google.
both relatives lived in the states and took us citizenship many years ago. just had investments/pensions in many places in the US, some taxable.. some not. just the ones that are seem very complicated.. i.e 10-40 percent tax possible.. depending on how you withdraw the money out. I'm sure it will get sorted one way or anther. TY

DavidTreitel
Posts:272
Joined:Thu Aug 16, 2012 4:31 pm

Re: Inheritance from Familly member in the USA to a UK resident

Postby DavidTreitel » Tue Mar 26, 2024 11:18 pm

The UK tax position on distributions from inherited US plans is soon to be clarified by HMRC. I met with a senior HMRC official today to discuss this matter.

Should professional help be needed, US filing will also be required, these are issues that our firm handles routinely every day.

nicey1958
Posts:5
Joined:Sat Mar 16, 2024 8:30 pm

Re: Inheritance from Familly member in the USA to a UK resident

Postby nicey1958 » Wed Mar 27, 2024 10:24 am

The UK tax position on distributions from inherited US plans is soon to be clarified by HMRC. I met with a senior HMRC official today to discuss this matter.

Should professional help be needed, US filing will also be required, these are issues that our firm handles routinely every day.
TY for your reply..


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