Inheritance From USA

Crego

My Father has recently been left a sum of money by a relative who had emigrated to the USA.

As part of the process he has been contacted to advise that he would be responsible for tax payable on interest accrued on the amount. Due to this he has been asked to complete a W-7 form in order to get an ITIN ( Individual Taxpayer ID Number). This process involves providing original or certified copies of passport, driving licence etc He’s a bit concerned by this, despite the deceased relative unfortunately being genuine.

My attempts to google the subject haven’t thrown up anything definitive. Is this standard procedure for a US estate? The state in question is Washington which does appear to have an estate tax.

Yorkshireman99

What-exactly is the problem? He just needs to send the documents requested.

Crego

I’m not sure that there is a problem. He’s very likely being over cautious regarding it.

Just trying to establish if this is typical procedure to put his mind at rest.

Yorkshireman99

Crego wrote: »

I’m not sure that there is a problem. He’s very likely being over cautious regarding it.

Just trying to establish if this is typical procedure to put his mind at rest.

Perhaps phoning the US embassy might be best. Note they observe US public holidays not ours. The US authorities can be very difficult and bureaucratic. A quick google will tell some bits there is no estate tax for beneficiaries unless estate is large it is all,paid by the estate. Do some googling.

Crego

Thanks for you reply, as already said I’ve googled the subject and it’s far from clear cut. Hence looking to see if anyone had been in a similar situation and if this was fairly standard.

Yorkshireman99

Crego wrote: »

Thanks for you reply, as already said I’ve googled the subject and it’s far from clear cut. Hence looking to see if anyone had been in a similar situation and if this was fairly standard.

It varies from state to state. Try being more selective with the googling. Check the state inheritance and estate tax rules.

Keep_pedalling

The process is a bit of a pain, and I would not bother if we were just talking about a small amount of interest, it would just mean you lose some interest through withholding tax. If it is more substantial or if he has been left shares then yes he should sort this out and provide the documentation required.

Crego

Yorkshireman99 wrote: »

It varies from state to state. Try being more selective with the googling. Check the state inheritance and estate tax rules.

And again, I’ve already mentioned the state and the rules. Perhaps you could try reading less selectively...

Crego

Keep_pedalling wrote: »

The process is a bit of a pain, and I would not bother if we were just talking about a small amount of interest, it would just mean you lose some interest through withholding tax. If it is more substantial or if he has been left shares then yes he should sort this out and provide the documentation required.

Much appreciated, thank you.

bouicca21

An ITIN is required for federal tax. If you need to submit a federal tax return, then you need the ITIN.