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    rgeo's Avatar
    rgeo Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 31, 2013, 07:11 PM
    Paying Taxes on Inheritance Money
    I will receive a cash inheritance from an individual who was born in Bristol England and died in China... I live in the USA / Michigan.. it will be over 10 Million dollars... will I owe Federal and or State of Michigan taxes... how do I find out
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Jan 31, 2013, 07:34 PM
    There are NO federal inheritance taxes.

    Since the inheritance is from overseas, there are no federal estate taxes.

    You should call the Michigan state tax department to find out if the state of Michigan has an inheritance tax, AND if it applies to inheritance from overseas.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #3

    Jan 31, 2013, 07:41 PM
    Taxes should have been paid by the estate.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Jan 31, 2013, 08:40 PM
    Estate taxes ARE paid by the estate.

    Ineritance taxes are paid by the heir.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #5

    Jan 31, 2013, 10:33 PM
    You may need to file Form 3520. There is no federal tax on inheritances.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #6

    Jan 31, 2013, 10:42 PM
    MukatA,

    Good catch on the Form 3520.

    The OP should have done professionally, given the amount of money involved.

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