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Mcbury · Sep 27, 2009, 09:16 PM

Hi,
I am the executor for my uncle's estate. He has left a portion of his estate to 6 individuals in Italy. They will each receive between $100,000.00 & $130,000.00. My questions are:

1. What is the best way to get them the money? I have opened an account with HSBC Bank. Should they as well?
2. Does IRS Form W-8BEN come into play in this circumstance? If so, what percentage will the US withhold?
3. What other questions should I be asking?

Thanks in advance for any help you may provide!
Matt

Five Rings · Sep 28, 2009, 07:09 AM

In 2009 the estate tax exclusion covers the first $3,500,000 of the estate. If your Uncle had less than this in his estate no tax is owed.

The US does not consider bequests to be income and so no tax is imposed on inherited amounts even for nonresident aliens. Thus, there is no need for a W8-BEN.

As to how to transfer the money, let the banks figure that out.

You should consult Italian tax authorities to determine if any Italian tax is due from the beneficiaries.

Mcbury · Sep 29, 2009, 10:28 PM

Thank-you for your insight Five RIngs!