U.S. Expats | TaxConnections

Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Guide To U.S. Inheritance And Estate Tax For US Expats

Are you worried about paying inheritance tax in the United States and your country of residence? In this guide, we’ll discuss what the inheritance tax is when it’s taxable and what tax obligation you might have in relation to inheriting an estate.

Losing a loved one is often an emotionally charged and complicated process. Things can get even more complicated by different laws and regulations if you’re inheriting property from someone who lives overseas or you reside abroad. It’s important to understand how US inheritance tax laws might impact you.

What Is Inheritance Tax?

The term “inheritance” refers to the transfer of wealth from a deceased person to his or her heirs. This includes real estate, stocks, bonds, cash, bank accounts, retirement plans, life insurance policies, etc. Inheritance tax is a state tax that you pay when you receive money or property from the estate of a deceased person.

What Is an Estate?

Written by Olivier Wagner | Posted in U.S. Expats • U.S. Inheritance And Estate Tax

Even if you have left the United States for a brighter future elsewhere, you (something not as strong) take a moment and think about any obligations you have towards the IRS. The US retains its right to tax globally its citizens and resident aliens who are a citizen or national of a country with which the United States has an income tax treaty in effect. Only two countries have such a citizenship-based taxation system: the United States and Eritrea.

What Is A Foreign Earned Income Exclusion For U.S. Expats?

The Foreign Earned Income Exclusion (FEIE) is offered to US citizens and resident aliens that are living abroad on a consistent basis, have earned income in a foreign country and can prove that they have done so for the past tax year by satisfying either the Physical Presence Test or the Bona Fide Residence. Read More

Written by Olivier Wagner | Posted in Expatriate • Expatriate Taxes • Foreign Earned Income Exclusion