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Question
if i leave my 401k to a company overseas when i die, in which countries are taxes owed upon the inheritance?
AI accountant’s answer:
I'm not a tax professional, but I can try to provide some general information. When you leave a 401k to a beneficiary, the taxes owed may depend on the specific tax laws of both the United States and the country where the company is located. In the U.S., your 401k is generally considered part of your estate, which may be subject to federal estate taxes if the estate's value is above the federal estate tax exemption amount ($12,920,000 for 2023). However, there may be exceptions, so it's important to consult with a tax professional familiar with both U.S. and international tax laws to understand the specific tax implications. As for the country where the company is located, tax laws vary widely, and they might have their laws regarding inheritance or estate taxes. You should consider consulting with a tax expert who is knowledgeable about the laws in that specific country.
Comment from reviewer
David Bailey, EA, MBA
Not Correct.
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