Inheritance from overseas (USA)?

N

Nuke47

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First I will be getting some professional advice concerning this so, I'm just looking for some ideas on here on where I stand.

My mom has left me around 200,000 US dollars in a trust fund. It's well under the the US threshold on tax but if I get it transferred here into my bank account to pay off all my debts will I be subject to tax? Would it also be considered inheritance here in Ireland?

I have dual citizenship (US and Irish) and have been a stay at home dad for 15 years so I've been off the grid. Before that I was working two years in Ireland the rest in the States(I'm from the US). Also, my wife is Irish and is the main breadwinner.
 
At a guess you should have no tax issues here in Ireland as the money is yours under US tax law. You can transfer money from the US to here and as long as it is lawful funds its yours.
 
Yeah, I've been a resident in Ireland for 18 years and never received any money from my mom prior.
 
As long as your mother was US resident at the time of her death, you need to ignore the usual Irish CAT rules and look to the Irish US Double Tax treaty under which you would have an exemption of up to $5,000,000 US from Federal Estate tax and that should discharge your liability to Estate Taxes in both jurisdictions.

However, as a US Citizen, you are caught by the FACTA reporting requirements designed to ensure that you appropriately file your US Taxes with the IRS each year (something that many US Citizens in Ireland "forget" to do) you must file with the IRS annually even though you have been in Ireland for the last 18 years and may have no earned income.

You therefore have some complexity around your personal financial affairs on an ongoing basis even if all you do is use the inheritance to pay off debts.
 
Hi Marc,

Marc said:
As long as your mother was US resident at the time of her death, you need to ignore the usual Irish CAT rules and look to the Irish US Double Tax treaty under which you would have an exemption of up to $5,000,000 US from Federal Estate tax and that should discharge your liability to Estate Taxes in both jurisdictions.

However, as a US Citizen, you are caught by the FACTA reporting requirements designed to ensure that you appropriately file your US Taxes with the IRS each year (something that many US Citizens in Ireland "forget" to do) you must file with the IRS annually even though you have been in Ireland for the last 18 years and may have no earned income.

You therefore have some complexity around your personal financial affairs on an ongoing basis even if all you do is use the inheritance to pay off debts.
Click to expand...

Thanks for your replies - can you point me to the language in the tax treaty (or elsewhere on revenue) that allows for the use of the US Federal Estate Tax exemption to discharge any CAT liability? Thanks!
 
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