U.S. citizen with Inheritance in Europe,,where do I pay taxes?

Question

My dad left me an inheritence ib Belgium, It is in a fund in my name at a big bank there. My question is what is the best way to bring it over here? Do I pay taxes in Belguim and US? It is less than a million doallars but the entire estate was more than a million. Bank tells me to leave it there and travel over and take small amounts but that doesn't sound right to me. Every finacial advsior I meet with just wants to sell me funds. I want to buy a house and earn interest on the remainder. Is there a certain type of tax lawyer that would specialize in this

Answer 1

I can't speak for Belgium, but an inheritance is not subject to tax in the US. If your Dad was a US citizen or resident the estate may owe US Estate Tax but that's the responsibility of the estate.

If you live in a state with an inheritance tax, you would have to pay that if the estate didn't pay it in your behalf.

The bank can arrange a wire transfer to your bank in the US. There will be fees for the transfer and the currency conversion. They could also probably issue a bank draft payable in US dollars and send that to you for deposit to your account. You should specify that the draft be drawn on a US bank. It will be easier for your bank to verify so a long hold is not put on the funds. Several major European banks do have US branches and can issue such a draft. Deutche Bank and Barclay's are two that immediately come to mind.

Answer 2

You need to consult a tax adviser who knows the laws in the US and Belgium. There is probably no tax in the US but who knows about Belgium?