From what I've looked into, it seems like if your sons inherit your US IRA, they'll only have to deal with US taxes on it. The IRS will let them take distributions over 10 years, and they'll pay taxes as they go, but the UK won’t tax it because it’s a US asset. The inheritance tax in the UK would apply to your estate in the UK (like your house) but not to the IRA itself. I’m not an expert, but it seems like this is the general way it works. It could definitely be worth chatting with someone who specializes in cross-border tax stuff to get a clearer picture for your situation.
Statistics: Posted by Emorla — Sat Nov 23, 2024 4:33 am — Replies 6 — Views 219