[WSBAPT] Mandatory withholding on tax deferred account paid to noncitizens

[Katharine P. Bauer]

There are some issues pertaining to the need of a PR to withhold taxes owed
to the government from out of country beneficiaries.  Just what to withhold
depends on the treaty or protocol between our country and their country of
residence.  It is far easier to compute all taxes (income, capital gains
etc) and then deliver the balance to the appropriate legatees.  I had a 3
million dollar estate, with over 100 beneficiaries, half of whom were in
Canada.  The tax owed in our situation was less than $1500 and it was
easier (cheaper for the estate) to pay the tax than to compute each
individual's share and withhold those amounts....run the numbers to see
where you stand.

On Fri, Feb 27, 2015 at 2:10 PM, Sherry Bosse Lueders <
sherry at sherryluederslaw.com> wrote:

>  A similar question to one posed yesterday, but with a slight twist in
> facts: Decedent has a tax-deferred account paid to the Estate, but several
> of the Estate’s beneficiaries live outside the U.S. and are not U.S.
> citizens. When dealing with beneficiaries who would not otherwise owe US
> income tax, should the estate still distribute the full amount and instruct
> the beneficiaries to consult with an accountant regarding taxes owed on the
> distribution? The countries involved are the Czech Republic and Japan –
> does anyone have specific experience with making distributions in those
> countries?
>
>
>
> *Sherry Bosse Lueders* | Of Counsel
>
>
>
> Stacey L. Romberg, Attorney at Law
>
> Telephone:  (206) 784-5305
>
> Fax:  (206) 789-8103
>
>
>
> Visit our website at http://staceyromberg.com/.
>
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-- 
Katharine P. Bauer
Bauer Pitman Lifetime Legal, PLLC
1235 Fourth Ave. East, Suite 200
Olympia, Washington 98501
tel. 360.754.1976
fax. 360.943.4427

 e-mail: kpb at bpblegal.com

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