Ask the experts: Must our children pay tax on their inheritance? As long as you have no intention of leaving the USA, we can assume that you have lost your UK domicile of origin and obtained a new domicile of choice in the USA, so you are not subject to UK inheritance tax except on assets situated in the UK. Either way, your children would not pay any tax on receiving an inheritance from you because both the USA and the UK charge tax on the estate i.e. on the donor, not the donee. Once all relevant estate taxes have been paid - and there should be none - the remainder can be distributed without further tax consequence for UK beneficiaries.