Q: Will i need to pay tax on money if i claim it from a deceased relatives offshore bank account

A: When you inherit money from a deceased relative's offshore bank account, tax implications can vary based on the laws of your country and the country where the money is held. Typically, inheritance itself may be taxed, and different countries have different rules regarding overseas assets.

In some jurisdictions, you may be required to report this inheritance to your tax authority, especially if you exceed certain thresholds. It's also possible that the estate of the deceased has to settle any owed taxes before the money is distributed.

It is advisable to consult with a tax professional familiar with international estate laws to understand your specific situation. They can provide guidance on any required declarations and payments. Additionally, maintaining proper documentation and compliance with all relevant tax laws is crucial to avoid penalties.

A: If you are referring to US Tax then it depends. If the deceased relative is a US citizen or resident then 1) There could be a tax on the inherited amount in the bank account which depends on Estate Tax rules (currently ($13.61 Million per individual). 2) You need to be sure that the deceased person was declaring the offshore account in their US tax filings. If there is more than $10,000 in such an account (or multiple accounts) then they had a requirement to file FBARs in the US, and if they did not the IRS may come after the Estate for tax, penalties, and interest. If the deceased is a non-US person then the offshore account is not subject to US tax at all, as foreign gifts are not taxable. However, there is a requirement to file a Form 3520 to record the foreign gift. Be sure to make that filing because the penalties for noncompliance are steep!