Inheritance from non US citizen

[fbeyd]

Hi everyone!

My grandmother, who is not us citizen and non resident, just told me that she has some money set aside for me (grandchild) and my mother as inheritance. Both me and my mother are us citizens but my grandmother is not. I was wondering if me and my mom will end up paying huge taxes on this inheritance? if so, is there something that my grandmother can do to reduce such tax.

Thanks!

[FIREd]

My understnading is this:

Your grandmother's estate will be taxed by her country of residence, but your share of the inheritance will probably not be taxed by Uncle Sam (there are exceptions so check the IRS website). If, however, the inheritance is large enough, it will still have to be reported to the IRS via form 3520.

[MichaelB]

Quote:

Originally Posted by FIREd My understnading is this: Your grandmother's estate will be taxed by her country of residence, but your share of the inheritance will probably not be taxed by Uncle Sam (there are exceptions so check the IRS website). If, however, the inheritance is large enough, it will still have to be reported to the IRS via form 3520.

This is my understanding under current tax law.