Inheritance

LesleyPepper

My sister lives in Oklahoma (27 years) and is about to inherit a fair amount of money. She seems to think she will have to pay 38% in tax!!!! Is it possible for her to open a bank account in this country but draw the money out over there and not pay the tax? (she still has a British passport). Or does anyone have any other suggestions please?

Hominu

LesleyPepper wrote: »

My sister lives in Oklahoma (27 years) and is about to inherit a fair amount of money. She seems to think she will have to pay 38% in tax!!!! Is it possible for her to open a bank account in this country but draw the money out over there and not pay the tax? (she still has a British passport). Or does anyone have any other suggestions please?

Sure, after all, this forum is all about how to commit tax fraud.

getmore4less

LesleyPepper wrote: »

My sister lives in Oklahoma (27 years) and is about to inherit a fair amount of money. She seems to think she will have to pay 38% in tax!!!!

Thinking is not good enough find out properly if the inheritance is taxable.


What tax does she think she will be paying might be a good start?

LesleyPepper

I was just looking for help having never been in this position before and didn't know what to do. There was no intention of committing any kind of fraud. Will just go an ask at the bank which was where I was originally going until someone told me this site was supposed to very helpful. Will delete my posts too.

LeDe_2

LesleyPepper wrote: »

There was no intention of committing any kind of fraud.

It does come across that way and just as an FYI, theres no need to tell the IRS unless the estate exceeds $5million (don't quote me on that, a tax attorney is her best shot).

troubleinparadise

This guide might give a bit more information about US taxes on deceased estates:

http://wills.about.com/od/Understanding-Estate-Taxes/qt/Will-You-Have-To-Pay-Taxes-On-Your-Inheritance.htm

GingerFurball_2

LesleyPepper wrote: »

My sister lives in Oklahoma (27 years) and is about to inherit a fair amount of money. She seems to think she will have to pay 38% in tax!!!! Is it possible for her to open a bank account in this country but draw the money out over there and not pay the tax? (she still has a British passport). Or does anyone have any other suggestions please?

I would imagine that unless she's resident in the UK she'll struggle to open an account with a UK bank.

System

GingerFurball wrote: »

I would imagine that unless she's resident in the UK she'll struggle to open an account with a UK bank.

No problems.
My wife has an American aunt who regularly visits the UK, and has a UK bank account. So does my brother, who has worked in the US for 25 years.
My brother inherited money in trust jointly with me. If we cashed it he would be liable to US gift tax. But if we leave it until he returns to the UK eventually, there would be no US tax liability.

You need a tax expert who understands these things.
It isn't clear whether this is a UK legacy or US.