How to receive inheritance money from abroad: Fees, limits and tax implications in 2025
If you have inherited money from someone based overseas, you’ll need to navigate the process of managing taxes both overseas and in the US, and repatriating your money to the US.
The tax implications of receiving a foreign inheritance can vary pretty widely depending on the country the deceased person lived in and the value of the payment. Your own residence may also make a difference as some taxes can apply on a US state level.
This guide covers some important things to think about, and also touches on some low cost providers such as Wise and OFX which can be a good choice for transferring inheritance funds from overseas to the US.
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What happens if you inherit money from another country?
If a friend or loved one has died overseas you may need to help with executing the will and ensuring that any inheritance can be transferred to the intended recipients.
When someone dies, their estate – which can include their money, property and other goods – will be managed in accordance with the law in the country they died in. There may be taxes – such as estate tax – to pay before any inheritance can be distributed.
Taxes can apply both in the country the individual died in, and in the US if you intend to bring the inherited funds back.
If you’ve been named as the executor of a will, you’ll likely be responsible for some or all of the following steps:
- Making sure all beneficiaries of the will are notified
- Valuing and managing the estate
- Obtaining the authority to administer the estate
- Ensuring that all tax obligations are properly addressed
- Resolving any outstanding debts
- Overseeing the division of the estate
In this guide, we’ll cover how you can receive inheritance money from abroad safely with low costs, and the tax implications you’ll need to consider.
How to bring inheritance money to the US from abroad
If you’ve inherited money from overseas, you can bring the funds to the US in the following ways:
- Carry cash or a check to deposit to your US bank account
- Make a bank transfer from a bank in the country the individual died in, to your US bank
- Use a money transfer provider to send money from the originating country to a US bank
- Open a multi-currency account to receive the funds in the foreign currency without converting back to USD
Each of these options has its own pros and cons. Carrying cash or a high value check across national borders can be simple to arrange, but it’s risky, and will require you to report the funds to customs officials upon entry to the US. On the other hand, sending money through your bank can come with pretty high fees, but it’s a convenient way to repatriate your funds to your US bank account.
For many people, using a specialist money transfer service – like Wise, OFX or XE Money Transfer – can be a good solution, offering a convenient and cheap way to send and receive a high value transfer.
We’ll look at these ways to transfer inheritance money from overseas to the US in more detail next.
Best ways to transfer your inheritance money from overseas to the US
Managing the transfer of your inheritance payment electronically is secure and convenient. You can use a bank to make a wire to the US, or compare some specialist money transfer services to see if you can get a cheaper transfer with a better exchange rate. Here are a few great money transfer providers to consider:
| Provider | Large transfer fees | Exchange rates | Limits | Speed | Safety |
|---|---|---|---|---|---|
| Wise | From 0.57% | Mid-market rates | Usually around 1 million GBP or the equivalent | 60% of payments are instant, 90% arrive in 24 hours* | 2 factor authentication, in-app tracking |
| OFX | Fee varies depending on where the payment originates – often no fee for high value transfers | Exchange rate is likely to include a markup | No limit | 1 – 2 days | Secure app, 24/7 phone support |
| XE Money Transfer | Variable fees based on payment details | Exchange rate is likely to include a markup | Limit is based on the country the payment is sent from | Variable delivery times based on payment details | Industry level security from a huge global provider |
| Currencyfair | 3 EUR or equivalent | Exchange rate is likely to include a markup | No specified limit | Variable delivery times based on payment details | AWS hosted, thorough verification processes |
*The speed of transaction claims depends on individual circumstances and may not be available for all transactions
**Details correct at time of research – 26th February 2025. About Wise pricing/fees: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information
Wise
Wise operates in the US and many other countries globally, supporting international transfers to 140+ countries which you can arrange online and in the Wise app.
Currency exchange uses the mid-market exchange rate with low transparent transfer fees from 0.57% and high maximum limits (usually around 1,000,ooo GBP equivalent).
If you’re sending a high value transfer – more than the equivalent of 20,000 GBP – there’s an automatic discount on the fees you pay, and you can get dedicated support from the Wise high value payments team.
You can find more information on this guide: Wise large amount transfers.
You can also open a Wise account to send and receive international payments in a broad range of currencies. Accounts come with local and SWIFT details so you can be paid by others in global currencies and without needing to convert back to USD if you don’t want to.
How to receive inheritance money from abroad with Wise
Receive payments through Wise either to your bank account in the account’s designated currency, or into a Wise multi-currency account in 20+ currencies using local and SWIFT account details.
Learn more – How to receive money internationally with Wise
OFX
OFX offers international transfers in 50+ currencies, which often have no upfront transfer fee if you’re sending large payments. The fee that’s applied may vary depending on where the payment originates, and you can arrange your payment online, in the OFX app, or on the phone with a broker service available 24/7.
There’s no limit to the amount you can send with OFX. OFX exchange rates are likely to include a small fee.
If you’re a business customer you can also open a Global Currency Account which lets you receive payments from others in a selection of foreign currencies conveniently and with no OFX fee.
How to receive inheritance money from abroad with OFX
Receive payments through OFX to your bank account in the account’s designated currency. If you’re receiving money for your business you can also receive payments to a Global Currency Account in 7 currencies.
XE Money Transfer
Xe Money Transfer supports payments in many countries and currencies, with variable fees and exchange rates depending on where you’re sending to.
The Xe limits are set according to the country that the payment originates from, but it is generally fairly high. For example, from the US you can send up to 535,000 USD, from the UK you can send 350,000 GBP and from Europe you can send 400,000 EUR.
You can arrange your payments online or in the Xe app, for deposit to bank accounts and mobile money accounts.
How to receive inheritance money from abroad with XE Money Transfer
Receive payments through XE Money Transfer to your bank account in the account’s designated currency.
Currencyfair
Currencyfair has a flat transfer fee which is the equivalent of 3 euros – just over 3 USD at the time of research. There’s also a small fee added to the exchange rate used to convert your payment before it is deposited in your account in the US. There’s no advertised Currencyfair limit – if you’re sending a very high value payment you may want to check the limits which apply to your specific account in advance to ensure your transfer can go through smoothly.
You can create your payment online or in the Currencyfair app.
How to receive inheritance money from abroad with Currencyfair
Receive payments through Currencyfair to your bank account in the account’s designated currency.
Inheritance tax in the US
If the person you receive an inheritance from is not a US citizen or resident, the IRS is not likely to impose estate tax on the inherited amount. However, other taxes may still apply – including taxes in the country the deceased individual lived in, and state taxes in the US.
You’ll need to get professional support with your tax filing to make sure you’re complying with the laws which apply in your specific case.
This guide is for information only – seek professional advice if you need support about taxes in the US or abroad.
How much can you inherit without paying taxes in the US?
Estate tax is calculated based on the value of an inheritance, usually on the day the individual died. Estate tax levels are reviewed annually and are generally pretty high.
It is important to note that you may still need to report an inheritance to the IRS even if tax is not owed on it. Generally, you’ll have to file Form 3520 if you received an inheritance from a foreign person of 100,000 USD or more.
You may also be required to file Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
What are the US tax implications on an inheritance received from overseas?
You’ll need to get professional advice from a tax accountant to check the implications of receiving an inheritance. Some US states have their own taxes on inheritance, making this a complicated area to navigate. The value of the inheritance, where it has come from and where you’re a resident can all make a difference to where and whether you need to pay tax.
How to avoid double taxation when receiving inheritance
The US has estate tax treaties with many countries which help to avoid individuals paying additional taxes on inheritance. You’ll need to check the details based on the country the individual was resident in at the point of their death to see if a tax treaty applies in your specific case.
Selling inherited foreign property
If you have inherited a property overseas and need to sell it, you can do so subject to tax rules in the country the property is located in.
You may need to pay capital gains tax, for example, which could be owed in the country the property is in, as well as in the US. Once you have navigated the tax implications of selling your inherited property you can repatriate the funds.
Check out the following money transfer services as good ways to move money back to the US from overseas:
- Wise – send high value payments with discounts on fees if you transfer 20,000 GBP or more in a month, limits around equivalent of 1,000,000 GBP
- OFX – no limits on the value of transfers, often with no fee for high value payments
- XE Money Transfer – send payments digitally, with variable limits and fees based on the country you send from
- Currencyfair – send payments internationally with a low, fixed fee and fair exchange rates
What is the tax for selling inherited property overseas?
You’ll need to take professional tax advice to understand how taxes apply to your property sale, both in the country the property is located in, and in the US. Capital Gains Tax and Estate taxes may apply, for example, which can be set at national levels or by the state you reside in.
What are the rules for receiving inheritance from abroad?
The way receiving an inheritance works can depend on the country the heir is resident in for tax purposes, as well as the country the individual died in. Each country has its own inheritance regulation, so legal processes and taxes may be different.
To receive inheritance from abroad, the heir will need to clarify the legislation to be applied based on the countries involved. They’ll then be able to pay any taxes owed and the remaining assets of the estate can be transferred to the heir.
Will I be taxed here in the US if I receive money from abroad for inheritance?
What taxes apply in the US for foreign inheritances can vary depending on the country the individual died in, the value of the inheritance, and the state you reside in.
It’s very important to check the rules in your specific situation to comply with all relevant legislation.
Do I need to inform the IRS if I inherit money from abroad?
You may need to submit Form 3520 to the IRS if you received an inheritance from a foreign person of 100,000 USD or more.
You may also be required to file Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
Because the rules can vary based on several factors, you’ll need to get professional advice to understand the application of the law in your specific case.
More information – International wire transfer regulations
How to deposit a large cash inheritance?
If you have received an inheritance in cash you may be considering bringing it to the US in your luggage, or shipping it using a courier or other method. It’s important to note that bringing over 10,000 USD into the US requires you to report to border control on arrival in the country.
This rule applies if you’re carrying cash, or other cash-like methods like checks or travelers checks.
If you’re looking to transfer your inheritance wth your bank, these guides might help:
Conclusion: Best ways to bring inheritance from overseas
If you’ve inherited money from overseas you’ll need to navigate the practical, legal and tax implications both in the US and in the country the deceased individual lived in.
Tax rules – including thresholds and rates for Capital Gains Tax and Estate taxes – can vary widely from one country to another so you’ll need to take professional advice to make sure you comply with all relevant laws.
- Capital Gains Tax and Estate taxes may apply on an inheritance, either in the country the individual died in, or in the US
- Bring the funds from your inheritance to the US as cash, a check or an electronic transfer
- Electronic transfers are the most secure and convenient option and can be processed in USD and other major currencies
- Check out providers like Wise and OFX for low cost international transfers to the US, or consider a multi-currency account from a provider like Wise if you want to receive your money in a foreign currency
FAQs
Is inheritance from abroad taxable in the US?
If you have inherited money from overseas there may be tax requirements in the country the deceased individual lived in, and in the US. The situation can vary widely depending on factors like the value of the inheritance, the country involved and the relationship between the deceased individual and the heir. Get professional advice to help you navigate the rules properly.
Do I need to pay taxes on inheritance from abroad?
You may need to report or pay tax on your inheritance in the country the deceased individual lived in, and/or in the US. This will depend on the nature of the inheritance and where you live, among other factors.
Related article – International wire transfers over 10,000 USD
How long does it take for inheritance money to come through from overseas?
If you have inherited funds from overseas the amount of time taken to execute the deceased individual’s will can impact how quickly you receive your funds. Take local advice in the country the deceased individual lived in to understand how the process works there.
