Inheritance and US based shares

Discussion in 'Wills, inheritances and gifts' started by Billy Baltic, Feb 13, 2018.

  1. Billy Baltic

    Billy Baltic Frequent Poster

    Posts:
    42
    Through working for multinationals I have accumulated a basket of US based shares.

    I'm treating these as a long term investment and therefore may become some element of an inheritance.

    Is there an added complication from these being US shares in the case of inheritance (US inheritance tax) or are they treated the same as an Irish based asset?

    Thanks in advance
     
  2. SBarrett

    SBarrett Frequent Poster

    Posts:
    2,557
    As far as I am aware, you can leave $60,000 tax free, the rest is subject to inheritance tax in the US.

    If you look into this a bit further, you will see that in a lot of cases, this is ignored in a lot of cases and the money is taken out of the US without paying the IRS the inheritance tax. So it will be an issue for your executors and whether they want to pay Uncle Sam or not.



    Steven
    www.bluewaterfp.ie
     
  3. Marc

    Marc Frequent Poster

    Posts:
    861
    Last edited: Jun 7, 2018
    .
     
    Last edited: Jun 7, 2018
  4. Billy Baltic

    Billy Baltic Frequent Poster

    Posts:
    42
    Wow! I thought there might have been some tax and threshold but not this punitive.
    One of the posts above indicates that many people choose not to pay. Is this route even possible if the shares are held with a stock transfer company or will they take the tax at source?
     
  5. Gordon Gekko

    Gordon Gekko Frequent Poster

    Posts:
    2,891
    If you hold the shares with a non-US institution, you can get around the US tax issue.
     
  6. Billy Baltic

    Billy Baltic Frequent Poster

    Posts:
    42
    Thanks for the response.
    Is it that keeping the shares with a non-US institution removes the liability or is it that its easier / possible to avoid a liability?
    The intention is to avoid tax but not evade it.
     
  7. Gordon Gekko

    Gordon Gekko Frequent Poster

    Posts:
    2,891
    The latter!
     
  8. PMU

    PMU Frequent Poster

    Posts:
    884
    A question. If the shares are held in a nominee a/c in the US is there still a tax issue on inheritance, i.e. the shares are not held in the name of the deceased?
     
  9. Gordon Gekko

    Gordon Gekko Frequent Poster

    Posts:
    2,891
    My understanding is that there is an issue as the provider needs a US grant of probate.