i have been asked to advise on the implications of an American national living in the UK receiving an inheritance from italy and switzerland. i am trying to find out what the tax consequences are, who has to be informed etc..
Nicholas Myles
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Short Bit About US Inheritance Tax.
Short. Ha. No such thing as short!
Long. The slightly longer version is that an American citizen who recieves an inheritance is not subject to tax on the reciept of that inheritance. However, the assets aquired as a result of that inheritance will certainly generate some sort of taxable income.
This American should be filing US tax returns every year, and their US tax advisor should be providing full advice regarding this situation. If this American is delinquent in thier filings, several US tax accountants work in London who specialize in bringing out-of-compliance people back up to date. (I'm one of them).
The Swiss income in particular probably has no foriegn taxes paid on it, and there will be consequently significant US tax exposure. You should encourage this American to get their US taxes sorted out soon.