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Does one pay taxes on an inheritance from overseas?

Will I have to pay taxes from my inheritance money?

  • I recently got inheritance and I was told that I was supposed to pay 45% of the money in taxed by next March or April and I was wondering if this was true. What happens if you cannot pay the taxes?

  • Answer:

    In Canada, there is no inheritance tax to a beneficiary. HOWEVER, there is a deemed disposition of all assets on the date of death. This often triggers capital gains tax. But this is all taxable in the hands of the ESTATE of the deceased, BEFORE anything is distributed to the beneficiaries. The beneficiary is NOT liable for taxes. The executor (trustee) of the will is the one responsible for paying taxes before any distribution of assets. The confusion can come from the executor of the will and the sole beneficiary sometimes being one and the same person. ********************** ADDED It says Canada because you CHOSE to post your question in this Category. In the US there is Estate Tax, which again is payable by the Estate BEFORE any distribution to the beneficiaries. Read this: http://www.irs.gov/pub/irs-pdf/p950.pdf **************************************…

Sean G at Yahoo! Answers Visit the source

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In the US there is no tax on Inheritance. Depending on the size of the estate (over $3.5 million right now), there may be an Estate Tax but if so, the Estate Tax is paid by the estate before the estate is disbursed (paid) to the heirs. Some states, like New Jersey, do have an Inheritance Tax that must be paid by the recipient of the inheritance . But you will have to check on the tax law for your state.

Jeanne R

if you are in canada, no tax on inheritance. if you are in the u.s., you are in the wrong forum and i don't know the answer

Sparky

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