Tax rules for foreign gifts and inheritances

Many North Carolina residents are globally mobile. As a result, some of them might have questions about how property received from outside of the United States may be taxed. Whether a gift or inheritance that is received from another country will be taxed seems to be a particular concern.

The United States does not assess inheritance taxes on transfers by bequests. It also does not impose gift taxes on property that is not located in the country and that is gifted from foreign nationals with no domicile in the United States. However, individuals should be mindful that such gifts or inheritances may be taxed under other tax rules.

One structure for transfers by bequest in the Internal Revenue Code pertains to death transfers by citizens of the United States no matter where they are living when they die. This structure also applies to the estates of foreign nationals living the United States, with some exceptions for transfers to spouses of non-U.S. citizens.

The United States will not impose an estate tax on a transfer by bequest if the decedent who transfers the asset by request is not an American citizen or a foreign national living in the United States. There is also no income tax assessed for inheritances that are brought into the United States. The gift tax rules are applied to any gratuitous transfers by United States citizens and foreign nationals domiciled in the country no matter the location of the transferred asset.

Individuals who are concerned about the estate tax for a complicated inheritance situation should consult with an estate planning attorney. The attorney may counsel a client on how the United States tax laws are applied to certain assets that are received from overseas.

No Comments

Leave a comment
Comment Information
Email Us For a Response
Orsbon & Fenninger, LLP - Estate Planning

Talk With Us: Schedule A Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location

Orsbon & Fenninger, LLP
4201 Congress St.
Suite 110
Charlotte, NC 28209

Toll Free: 888-314-8134
Phone: 704-900-3883
Fax: 704-556-9601
Charlotte Law Office Map

Office Hours: Monday : 8:30am–5pm Tuesday : 8:30am–5pm Wednesday : 8:30am–5pm Thursday : 8:30am–5pm Friday : 8:30am–5pm