09 Aug I’m getting an overseas inheritance. Will it be taxed?

Q. I will be receiving inheritance cash from the sale of my late father’s estate overseas. My father was not a permanent resident or citizen of the United States. The amount is over $300,00 but less than $400,000. I am a resident of New Jersey. Do I have to pay inheritance tax on the amount?
— Unsure

A. We’re sorry to hear about your loss.

You have to consider both the laws of New Jersey and the laws of whatever country your dad was living in.

Let’s start with New Jersey.

Children are exempt from the New Jersey inheritance tax, said Nancy Heslin Reading, an estate planning attorney with Reading Law Firm in Newton.

“However, the inheritance may be taxed in the country where Dad resided,” she said. “Each country has different tax rules.”

You’ll need to look at the rules of that country to know for certain the inheritance’s tax fate.

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This story was originally published on Aug. 9, 2023.

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