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Any Ameriacn Mnettters around?

7 replies

littlerach · 09/07/2006 19:41

DH's parents live in USA, as does his sister.

They have been sorting out their wills etc as FIL has retired. They are v unsure about the whole system out there, especially inheritance tax.

They want to know how it would ffect DH as he stands to inherit half of their estate. SIL will get the other half.

Are there high levels of inheritance tax?
Will DH lose a lot y inheriting over here?
Is there an American version of CAB?

They have hd conflicting advice from a number of parties so are rather concerned.


OP posts:
expatinscotland · 09/07/2006 19:43

Depends on the state.

There's no American version of CAB, unfortunately.

It can be complicated, however, if your DH is not a US national.

Really, really need a good attorney.

jennifersofia · 09/07/2006 19:43

Am American but useless to you because I really don't know - sorry about that! But I will be watching this thread as I am in the same boat!

expatinscotland · 09/07/2006 19:45

My dad's estate is set up to benefit a number of trusts, but he had a lot of help from an attorney.

He is a dual national - US/Mexico. My mother is US/French. And I am US/UK. So it's tricky.

littlerach · 09/07/2006 19:48

Thanks so much for replying.

The in laws have dual nationality and keep bank accounts here too. From what I have read, DH will lose an incredible amount by not being American, as there are huge penalties for transferring inheritance to abroad. So the were wondering oif SIL could be sole inheritee and she can then transfer money to DH at a later date. But that sounds too easy!

They are in California if that makes any difference.

OP posts:
Earlybird · 09/07/2006 20:12

I am by no means an expert - not even hugely up to speed...but, you are allowed to inherit a certain amount with no inheritance tax due. Once the estate value goes over the tax free amount, then tax is payable. The amount allowed has been increasing recently each year to reflect the fact that real estate has increased so dramatically in value the past few years. I think the amount currently allowed tax free is $1M, but as I said it shifts every year. Anything over the allowed amount is taxed at a federal and state level - I think.

There are all sorts of questions - are the assets substantial, where are the assets held, would your dh leave the assets in USA or bring them back into the UK etc. One other note, your dh's family can give away $11,000 per year tax free to any family member as a gift - anything over that amount is taxable. It's one way of getting assets out of an estate.

But, they really must see a professional tax advisor.

Earlybird · 09/07/2006 20:17

Can I also say that everything I've told you is for inheritance tax in America. No idea what tax would be due in the UK, but you would not pay double taxation.

Presume your in-laws file tax returns in both countries? Your accountants in each country should be able to offer insight.

littlerach · 09/07/2006 20:31

Thanks earlybird, FIL does have an accoutant so I've told DH to tell him to speak to him.

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