US Tax on a foreign property

[bobob]

US Tax on a foreign property

Foreign person – no US Connection
Daughter of the foreign person is a US Citizen
Granddaughter of the foreign person is a US Citizen
Grand granddaughter of the foreign person is a US Citizen
All are also Citizen of the foreign country.

The Foreign person is Owner of the real estate property in the foreign country, where she has lived all her live.
The Foreign person has a Will and The Beneficiary of the real estate property is the Grand granddaughter.

According to the foreign country Law after the dead of the foreign person the Title of the real estate property will be changed to the name of the Grand granddaughter and no Tax will be due to the foreign country.

Does anyone own any US Taxes?
For Example: Estate tax or Generation Skipping Transfer (GST) tax

[BOB W]

A beneficiary hardly ever pays any kind of taxes on inheritence. Estate & gift taxes are paid by the grantor/deceased not the benificary. So in your case, the foreign country would control the tax status.

If and when the benificary sells the inheritence, she will have to pay taxes on any profit since she is a US citizen and is taxed on her world-wide income. She will also pay any taxes in the foreign country and those taxes will be a credit against US taxes.