Expert: John Kirk, CPA Date: 8/6/2008 Subject: receiving beneficiary funds from out of the country
Question Dear Mr. Kirk, I have recently received a very large amount of money as the only beneficiary. The funds are currently offshore, as I need to know what documents I may need to have before transfer of funds to my account here in the USA. Would I be better off leaving the majority of funds in an offshore account, until needed, and if so, what would you recommend? Any additional information about this, that I have not asked, would be greatly appreciated. Thank you. Barbara
Answer There is no tax consequenses in transferring the money into the USA. Leaving the money in the off-shore account doesn't relieve you of taxation on the income earned on the account because you are subject to your worldwide income.
You may also have estate tax issues if your taxable estate exceeds $2 million.
I would suggest you seek a wealth management firm to discuss your particular situation.
