My client passed away and left her money to her nephew and sister in law in the Netherland’s. the annuity company must wire the money to the Netherlands as they do not accept or can cash any checks.

I am trying to send in the claim forms (non-qualified annuity with gains) but don’t know if her nephew should withhold any taxes or not? This is what he emailed to me:

Doug: It’s my understanding that this inheritance will be wired abroad and therefore the taxes of that country of the recipient, in my case the Netherlands, will apply. Am I correct? In this case I won’t pay taxes in the United States.

Just taking a chance to see if you know if he is right or not or should we withhold some Federal taxes?

Ps: not getting any where with the CPA’s here or at the annuity company.

Thank you for any help
Douglas