Author Topic: $300,000+ inheritance from teh US - Need help please  (Read 610 times)


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$300,000+ inheritance from teh US - Need help please
« on: September 22, 2017, 08:01:00 PM »
Hi there

I've been fortunate enough to have been given a $300,000 plus inheritance from my late grandfathers estate.

the lawyers have finalized the estate (less than $5,000,000 overall) and they have just informed me that 30% of my portion of the inheritance will be sent to the IRS as US taxes. I tried to ask why this would happen, but I received very short responses. In doing some research online it seems like inheritances shouldn't be taxed as long at the total of the estate is under $5M.

Do I really need to give up 30% to the IRS?
Is there any way to recover this amount by writing to the IRS?

if anyone has been in a similar situation I would love some help.


Phil Hogan, CPA, CA, CPA (Colorado)

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Re: $300,000+ inheritance from teh US - Need help please
« Reply #1 on: September 24, 2017, 03:59:13 PM »
Hi Jons

That's a little odd. Any income earned by the estate would attract a level of tax (30% if they are trying to be conservative), however withholding a full 30% on the full amount doesn't make any sense. It does seem that custodians are becoming must more conservation and withholding the maximum rates on their end and pushing all the risk to the non-resident. It's easier for them to withhold the maximum than to go through the motion of figuring out the proper non-resident tax withheld.

You may be able to to send them a completed W8-BEN to try and convince them to withhold nothing from the inheritance capital that you will be receiving. You can view the form here

If they refuse to make the change you can always file a non-resident US tax return (1040NR) to recover the difference. If you need help please give me a call at 250-661-9417 and we can chat.



Phil Hogan, CPA, CA, CPA (Colorado)
* The information contained in these posts should not be construed as professional advice and is for informational purposes onl