06 May Do I owe taxes on this inheritance?
Q. A friend who lives in the United Kingdom died and left me about 50,000 pounds, which I want to transfer to the United States. I’m considering a bank-to-bank transfer. What taxes will I be liable for in New Jersey and what paperwork would need to be filed?
A. New Jersey levies an inheritance tax on lots of transactions, but you’re in luck.
The state does not tax the transfer of funds from an inheritance in the United Kingdom, said David Ritter, chair of the tax practice at Brach Eichler in Roseland.
“There is no tax payable but a penalty for the failure to file, if required,” Ritter said. “So long as the 50,000 pounds is worth less than $100,000, there would be no filing.”
There’s not even any paperwork to file with New Jersey, he said, but Federal Form 3520 is required to be filed for bequests over $100,000.
Had your friend lived in New Jersey when he died, inheritance tax would have been due.
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This story was originally published on May 6, 2019.
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