Case study Inheritance received by U.S. citizen living in Ireland from U.S. resident parent

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Tawny

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Any Irish resident U.S. citizen with experience of receiving an inheritance from a U.S. resident U.S. citizen parent, out there? Property situate in US. What are the Irish Revenue implications? Double taxation agreement seems contradictory - in one place it says no Irish liability, whilst in others it suggests there is? Anyone know any accountant/lawyer with familiarity?
 
Have a read of this, http://www.revenue.ie/en/tax/cat/leaflets/cat2.html

Seems to be clear.

An inheritance of property situated outside Ireland is liable only if the disponer or the successor is resident or ordinarily resident in Ireland. Property situated in Ireland is liable to inheritance tax irrespective of the residence status of the deceased or the successor.
Where the deceased or the successor was domiciled outside Ireland at the date of the inheritance he or she is deemed to be non resident, unless he or she has been resident in Ireland for five consecutive years prior to the year in which the inheritance occurred.
Click to expand...
 
Thanks Joe 90. But then I read this from the revenue's own CAT guide:
"However the Convention provides that Ireland cannot tax property outside its territory unless the disponer died domiciled in the State (or the disposition in question was governed by the law of the State) or else died not domiciled (i.e. not resident) in the U.S and this will continue to be the position irrespective of the residency rules. This means that a benefit taken by an Irish resident beneficiary of U.S. situate property from a disponer who is domiciled in the U.S. might appear to be subject to C.A.T. but is in fact not liable under the terms of the Convention."
Still confused!
 
Agreed, when I looked at it first I thought the fact that it was immovable property and non domiciled that it would fall out but then saw the 5 year rule.

I'll look further.
 
Then I find this in the CA25 - Inland Revenue Affidavit Guide on revenue site:

Note line at end of grid:

"*Where a disponer dies domiciled in any of the states of the U.S.A., no liability to inheritance tax arises in respect of foreign situated property."
 
Thanks Marc. I have seen their PDF on Federal Estate Tax and I think they are on the US embassy list.
 
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