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<p><span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">Yes, <br>
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thank you!! Your info is helpful to me!<br>
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andrekita</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">Law Office of F. Andrekita Silva</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">1325 Fourth Avenue, Suite 2000</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">Seattle, Washington 98101</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">206-224-8288</span><br style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">
<span style="color: rgb(34, 34, 34); font-family: arial, helvetica, sans-serif; font-size: 11px; background-color: rgb(255, 255, 255);">www.seattle-silvalaw.com</span><br>
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Quoting John Wickham <<a href="mailto:jdwickham@rockisland.com">jdwickham@rockisland.com</a>>:</p>
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<p><font size="+1"><font face="Arial">Many thanks to John S. and Diane. </font></font></p>
<p><font size="+1"><font face="Arial">John Wickham</font></font></p>
<div class="moz-cite-prefix">On 6/16/2020 9:35 AM, John J. Sullivan, Esq. wrote:</div>
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<p class="MsoNormal">John:</p>
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<p class="MsoNormal">You describe the foreign tax as an inheritance tax. If what you describe operates like the various state level inheritance taxes here in America it is not an estate tax (as in WA and at the federal level) imposed upon the transfer from the estate to the beneficiary for which the estate (and if improperly left unpaid the personal representative) is responsible. It is a tax upon the beneficiary’s receipt of the distribution from the estate. Incidentally, my understanding of history here in WA is we actually had an inheritance tax until about 1980 when a pick up estate tax was passed by initiative.<br>
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I would be stunned, shocked and amazed to find that the foreign inheritance tax law imposes responsibility upon the estate or personal representative or has jurisdiction to do so if the estate has no contacts with the foreign country other than the beneficiary. I would recommend you check with the IRS website to see whether there is an estate tax treaty with the beneficiary’s home country and if so whether it says anything about that country’s inheritance tax.</p>
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<p class="MsoNormal">Another thought. If the will simply leaves the property or its proceeds outright to the foreign beneficiary, perhaps the beneficiary might wish to consider whether modifying the will through a TEDRA agreement to hold the inheritance in a testamentary trust here, or offshore, might remove the inheritance from the reach of the foreign inheritance tax. I would advise the client of the need for tax law advice by a licensed attorney in the foreign country as to whether this would work.</p>
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<p class="MsoNormal">On the issue of apportioning the tax among the beneficiaries, unless there is some very specific provision in the will, I do not believe the estate or other beneficiaries should bear any part of the inheritance tax burden if it falls upon the recipient and not the estate as transferor.</p>
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<p class="MsoNormal">John J. Sullivan</p>
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<p class="MsoNormal"><b>From:</b> <a class="moz-txt-link-abbreviated" href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> <a class="moz-txt-link-rfc2396E" href="mailto:wsbapt-bounces@lists.wsbarppt.com"><wsbapt-bounces@lists.wsbarppt.com></a> <b>On Behalf Of</b> Diane J. Kiepe<br>
<b>Sent:</b> Tuesday, June 16, 2020 8:09 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <a class="moz-txt-link-rfc2396E" href="mailto:wsbapt@lists.wsbarppt.com"><wsbapt@lists.wsbarppt.com></a><br>
<b>Subject:</b> Re: [WSBAPT] Foreign inheritance taxes</p>
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<p class="MsoNormal"><span style="font-size:14.0pt">Hi John,</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt">Interesting question and why tax provisions in Wills can become crucial. I would start with the Will and, if it says, as many Wills do, that taxes charged by reason of death of decedent is paid from the residuary of estate I would say yes.</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt">This is simply my gut response but I seem to recall this topic from days gone by in the discussions of drafting personalized tax provisions for QTIP property and other unusual circumstances.</span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt">Best to you,</span></p>
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<p class="MsoNormal"><i><span style='font-family:"Script MT Bold"'>Diane J. Kiepe</span></i></p>
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<p class="MsoNormal">Diane J. Kiepe</p>
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<p class="MsoNormal">Douglas Eden</p>
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<p class="MsoNormal">717 W. Sprague Ave.</p>
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<p class="MsoNormal">Suite 1500</p>
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<p class="MsoNormal">Spokane, WA 99201</p>
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<p class="MsoNormal"><a href="mailto:djkiepe@depdslaw.com" moz-do-not-send="true">djkiepe@depdslaw.com</a></p>
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<p class="MsoNormal">509-455-5300</p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com" moz-do-not-send="true">wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" moz-do-not-send="true">wsbapt-bounces@lists.wsbarppt.com</a>> <b>On Behalf Of</b> John Wickham<br>
<b>Sent:</b> Monday, June 15, 2020 5:31 PM<br>
<b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com" moz-do-not-send="true">wsbapt@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBAPT] Foreign inheritance taxes</p>
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<p><span style="font-size:13.5pt">Listmates:</span></p>
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<p><span style="font-size:13.5pt">Hypo: in a Washington probate, the Will contains a specific bequest to a citizen of a foreign country, who resides in that foreign country, of a modest piece of Washington real property.</span></p>
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<p><span style="font-size:13.5pt">That foreign country will assess a stiff inheritance tax when the citizen receives the bequest, whether it is still real property or whether the PR sells it and sends the net proceeds.</span></p>
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<p><span style="font-size:13.5pt">Does the estate bear any responsibility to the foreign government for its tax on its own citizen?</span></p>
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<p><span style="font-size:13.5pt">Thanks for your thoughts.</span></p>
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<p><span style="font-size:13.5pt">John</span></p>
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John D. Wickham
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P.O. Box 893
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Friday Harbor, WA 98250
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360-378-7178
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360-378-0849 Fax
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