Receiving US inheritance

[Elegiaque]

Just a general question if anyone has gone through this and has any advice or tips...

I'll receive a sum through the sale of a house in the US which is an inheritance. The sale will go to a sibling and then the sibling will give me xx amount. I will have them transfer it into my Charles Schwab investment account, as there is a US account number they can transfer it to. I think this is easiest?

I know nothing about US inheritance taxes... wonder if anyone has any suggestions for what to look out for? I will need to report it on my annual taxes.

[traineeinvestor]

I don't know the answer to your question, but the the people on the earlyretirement.org forum may be able to help - it's a US centric site and there are some very clued up people on it: https://www.early-retirement.org/forums/f28/

You could also try Bogleheads which covers a wide range of financial topics including taxes: https://www.bogleheads.org/forum/vie...f59a5e4788f8cc

[huja]

Just a general question if anyone has gone through this and has any advice or tips...

I'll receive a sum through the sale of a house in the US which is an inheritance. The sale will go to a sibling and then the sibling will give me xx amount. I will have them transfer it into my Charles Schwab investment account, as there is a US account number they can transfer it to. I think this is easiest?

I know nothing about US inheritance taxes... wonder if anyone has any suggestions for what to look out for? I will need to report it on my annual taxes.

Inheritance tax is state-based. Does the will or trust specify how the proceeds (and what portion of the proceeds) are pass along to you?

[Elegiaque]

Inheritance tax is state-based. Does the will or trust specify how the proceeds (and what portion of the proceeds) are pass along to you?

The whole state issue is so complicated. Actually, no... I think the house is already in my brother's name (he's now the owner). He's selling it and then I guess .....? The only will document said it should be split 50/50 -- but he will take a larger portion due to his time with the matter.

Beyond the taxes, though, logistically I wonder if there's a better way to handle it.

Hmm, realize I need to get more information.

[emx]

The whole state issue is so complicated. Actually, no... I think the house is already in my brother's name (he's now the owner). He's selling it and then I guess .....? The only will document said it should be split 50/50 -- but he will take a larger portion due to his time with the matter.

Beyond the taxes, though, logistically I wonder if there's a better way to handle it.

Hmm, realize I need to get more information.

So your brother is giving you a gift as such?

[madal1]

Is your brother the executor of the Will?

Depends on the amount, but in general, the estate pays the estate tax, and the executor distributes to the recipients. You do not pay another tax for inheritance. But best to consult the estate lawyer or a CPA.

[MABinPengChau]

No federal tax unless estate is over several million, most states have similar laws. I was executor of my father's estate, just got Merrill Lynch to cut the checks, no one reported the proceeds, estate well under the limit, had a lawyer in on it, he didn't say anything about reporting...sometimes the closing agent reports the house sale proceeds on a 1099 or some such but that would have been in your brother's name only...

[huja]

The whole state issue is so complicated. Actually, no... I think the house is already in my brother's name (he's now the owner). He's selling it and then I guess .....? The only will document said it should be split 50/50 -- but he will take a larger portion due to his time with the matter.

Beyond the taxes, though, logistically I wonder if there's a better way to handle it.

Hmm, realize I need to get more information.

Seems the tax/paperwork burden is going to fall on your brother rather than you given how you've spelled it out. Once it's in you Schwab account you'll have easy access to it. I suppose the tax man will want to know where that money came from but it won't be taxed as inheritance. Maybe classified as a gift.

As others have suggested, have a conversation with your accountant/tax preparer and he/she will know how to properly declare it to the IRS.

[seirin]

No federal tax unless estate is over several million, most states have similar laws. I was executor of my father's estate, just got Merrill Lynch to cut the checks, no one reported the proceeds, estate well under the limit, had a lawyer in on it, he didn't say anything about reporting...sometimes the closing agent reports the house sale proceeds on a 1099 or some such but that would have been in your brother's name only...

Yeah, the limit is 10.4m i think - quite a large amount.

[Elegiaque]

My tax preparer is my non-US spouse.

I wonder if there's anyone Hong Kong based who could advise.

Any of you have experience with an "executor fee"? Splitting based on what the other contributed to handle everything over months?