Parent in India, if the children living in the US as citizens or permanent residents inherit the parents' property in India, do they need to pay estate taxes in the US.
Typically there would not be an estate tax in the US on property located in India, even if the beneficiaries of the estate are US citizens or permanent residents. This can be different if your parents used to be US citizens or permanent residents and at some point renounced their citizenship or green card status.
The US beneficiaries, however, may have a requirement to file reporting forms in the US with regards to their inheritance of the property, their later ownership of the property, and any income generated by the property. I would suggest talking with a tax attorney experienced in addressing issues related to foreign income and assets and reviewing with them your specific situation. That attorney should be able to discus with you whether there are any particular reporting requirements relating to this inheritance and later income tax or reporting requirements based on what is planned to happen to the property in India.
Please note this information is general in nature and based solely on the information you have provided. This does not constitute specific legal advice.
No but you may be required to file Form 3520 and other information reporting forms. The penalties can be severe for not reporting on these forms so be sure to conduct your due diligence or hire a tax attorney or a CPA that specializes in expat/inpat tax.
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