how can i avoid large taxes on my forin inheritance. an make donations to the orphangs around world. i need good partners. to handle all and they wont work with me much in new mexico to much eviloney we get to make changes in or education. also rep. udall
StephenWeinstein
Favorite Answer
1. You do not pay taxes on the inheritance. You pay taxes on what you earn, including what you earn by investing the money that you inherit. The estate of the deceased person pays the taxes that are due because of the death.
2. You should give the money to a charity in the U.S. that will give the money to the foreign orphanages. If you give the money directly to a foreign entity, you may not be able to deduct it. Giving the money to a U.S. charity that is recognized by the IRS as one to whom donations are deductable will solve that problem.
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If you are a US citizen you will have no US income tax on money that you inherit. If you plan on giving it to charity you should consider US charities. If you are talking about a great deal of money you should consider a professional to assist you.