Some U.S. accounts accept euros

DEAR BRUCE: My siblings and I are in line to inherit an estate from our deceased father and his late wife. Although he was a U.S. citizen, she was a French national, and they lived in France. When their house is sold, we will receive our shares in euros. Considering the strength of the euro in relation to the dollar, we are wondering whether our inheritance can remain in euros. How can we save, earn interest and have access to it? What difficulties or tax problems might we face? Do U.S. banks allow for accounts in euros or must this money remain outside the United States? — L.C., via e-mail

DEAR L.C.: Your dad is a U.S. citizen, so his estate will be subject to U.S. inheritance laws. However, given the current $2 million exemption per person, the likelihood is that there will be no tax. You can certainly keep the inheritance in euros in a foreign bank, but there are U.S. banks that can accommodate you, too. It's not a big deal. Furthermore, while the euro is strong right now, I believe the likelihood of it becoming significantly stronger against the U.S. dollar is remote. In fact, many think the dollar will strengthen considerably over time. You didn't mention the numbers. If it's a large amount of money, you might wish to "hedge." Your accountant can explain how to hedge one currency against the other.

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