# Tag Info

72

You’re thinking about it wrong. To make the maths easier, assume the estate has just \$600K in cash and the \$300K property. If you each inherit equally, you each end up with \$200K and a third of the property. If one sibling buys out the others, then he ends up with the \$300K property and no cash, and the others each have \$300K in cash. So you all end up with ...

27

Imagine if there was no money in the inheritance, just the house. However your brother has his own \$200k account with money he saved from his day job. He starts with \$200k, inherits \$100k worth of house, total \$300k. He pays you and your third sibling \$100k each, now he owns an entire house worth \$300k but his bank account is \$0, total is still \$300k. He ...

15

This is very simple. The 3 of you need to split a \$2M estate (or whatever the TOTAL value of everything is). So that's about \$670k each. If one of you wants the house, then they can take the house worth \$300k, plus another \$370k on top of that. The other two just get \$670k in cash. And that's it. Just divide up the total value (including all property and ...

8

You start with \$2 million total inheritance. That means \$1.7 million in cash, and \$300k in the house. I think this is the part that you're missing - the house is part of the total inheritance, not anything on its own. You each get \$567k in cash, plus a third share in the house. Then your brother buys you and your other sibling out. That's \$100k for you, ...

7

Regardless of which route you choose, you will have to pay CGT once, as you are treated as disposing of the asset at market value when you transfer it to him. So even with option 3 you'll be the one paying the CGT. You don't pay any CGT when you gift someone money, so even option 1 only means paying it once. If you were married or in a civil partnership, ...

6

I suggest you search under your grandfather's name in the Unclaimed Property Custodian website of the state where he lived. The uncashed dividend checks should have been turned over to the state after some period of time. (The legal term is "escheated".) You can claim these with a certified copy of the will. Of course, you want the stock, too! ...

5

Ignore the inheritance, and for a moment ignore the fact that your brother would be on both sides of the sale. You and your two siblings each own an equal third of a \$300,000 property (\$100,000 each). A buyer gives you \$300,000 in exchange for the property. You now do not have the house, but you each have a third of the \$300,000 payment (\$100,000 each). So ...

5

Your father's intent was to sell the property. He put it up for sale and a deal fell through. Your brother chose to buy the property and it appreciated in value. Unless you can prove that your father was not of sound mind and your brother took advantage of him, there's nothing you can do. Your brother had the foresight to make the purchase and take on the ...

4

First question: Do I need to register this house in my tax return here in US? There is no "registration" of foreign property (whether real estate or stocks or anything else) on a US tax return, but, as a permanent immigrant, your world-wide income is subject to US tax, and so I hope that you have been declaring the income generated by these ...

4

If you inherit an ISA from a spouse or civil partner, you can essentially keep the ISA without it affecting your own allowance. No inheritance tax is payable, as with all bequests from spouses/civil partners. If you inherit an ISA from a parent or anyone else, it stops being an ISA and you just inherit the contents of the ISA (cash or shares). It's subject ...

4

Frame challenge: do the maths and consider whether paying off the mortgage is really the sensible thing to do. Interest rates are at a historical low in the UK. You can get homeowner mortgages at around 1 - 1.5% and buy to let at 2 - 2.5%. If your partner's current mortgage rate is worse than that consider remortgaging or asking the existing lender for a new ...

3

Sorry for your loss. Inheritance taxes are usually called estate tax, and estate tax is paid by the executor of the will (presumably you) out of the assets of the estate before the assets are divided among the beneficiaries. Given the small value of the estate (far less than the \$11 million+ Federal estate tax exemption), there is no Federal estate tax that ...

3

I can’t comment on the Italian side of things, but there’s no UK tax payable on receiving an inheritance. (There’s tax paid by the estate on its total value, but that’s out of the UK’s jurisdiction in this case.)

2

For the UK side, there is no tax or official charge payable to transfer the money in. As HMRC have already told you, there's no inheritance tax applicable as the deceased wasn't UK based. For a transfer, the source of the money is irrelevant as long as it is legal and you can demonstrate that if asked for money laundering purposes. You will need to use some ...

2

Your cost basis may be the fair market value at the time of your father's death. Here is the IRS discussion.

2

If your mother is not a US citizen, and the gift is "only" \$20K, it seems that you do not need to tell the IRS. https://www.irs.gov/businesses/gifts-from-foreign-person If you are a U.S. person (...) who received large gifts or bequests from a foreign person, you may need to complete Part IV of Form 3520, Annual Return to Report Transactions with ...

2

Others have shown how to do the math correctly. I'll try to show where, exactly, you had it wrong. Lets break up the equations in your sentence: he theoretically gets 100k of his share from the property (yes, it’s still IN the property) and after buying us out he will be theoretically negative 100k. (100k-200k= -100k) But now he has another 2/3 of the ...

2

Assuming it was your sister's (and throughout, by "sister" I mean your sister and her husband) choice to sell the house for 50% of its market value, I would argue that her only "loss" was \$60,000 (sold for \$60,000 when it could have been sold for \$120,000), not 50% of the future value. (If the house were to sell for less than \$120,000, ...

1

For me, that was enough. My dad died about 5 years ago, and I was the beneficiary of his IRA. The custodian transferred the money to me, no probate involved, and it was all very easy. Your mileage may vary...

1

Edit: Appears I was totally wrong regarding the transfer and sale as in option 3. As noted but the other commenters, CGT will be due on the market value at the date of gifting and the rate will be based on your income (20% after the 12,300 allowance). I've left the original answer below anyway. I'm not sure if there are particular rules regarding the ...

1

The US estate tax (if any) is paid by the estate, not by the beneficiary, and what the beneficiary gets is whatever is left after the executor of the estate pays the estate tax. In some cases, the executor may be forced to sell some of the assets to pay the estate tax, and so the beneficiary gets what is left. For example, the will of the deceased might have ...

1

Note this answer is for an individual who died in 2019 and whose beneficiaries have the opportunity to do 'Stretch IRA'. Beneficiaries for 2020 and later decedents are not able to take RMD distributions over the beneficiaries' lifetime. From: Publication 590-B (2020), Distributions from Individual Retirement Arrangements (IRAs) It is stated at the beginning. ...

1

Your thinking is way off. If he buys you out at 100k each, he started with 100k worth of the house and now owns a 300k house and is out 200k cash for no change. If he sells the house he is now +100k cash as are the two of you. This is the appropriate accounting if the house is worth 300k. The point that there are costs involved in selling a house is ...

1

Yes, you need to file a 3520 if the amount bequeathed to you was over \$100k USD, however it should not incur a (federal) tax burden. You will not need to submit an FBAR unless you have foreign accounts over the threshold. So if you have more then \$10K USD in your UK account(s), then yes, file the FBAR. Note that the FBAR requirement has nothing to do with ...

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