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The short answer
To take Nigerian property you inherit, the estate first needs a grant from the High Court probate registry in the state where the property is: probate if there is a will, letters of administration if there is not. Being next of kin does not by itself give you the property. On the US side, an inheritance is not income, but a US person who receives more than $100,000 in a year from a foreign estate must file Form 3520, and your basis for a later sale is generally the property's fair market value at the date of death.
When a parent dies in Nigeria, children in the US often hear two things at once: that the house is now theirs, and that an uncle has already moved in. Neither is quite right. Property passes through a court process first, and the people who control that process are the personal representatives named in the grant. Living in the US does not stop you being one, but it changes how you take part.
Step 1: the Nigerian grant
A Daily Trust explainer (10 December 2023) sets out the basic rule: a next of kin is not automatically entitled to inherit, and an estate needs probate (where there is a will) or letters of administration (where there is not) before assets are released. Where there is a will, the executors it names apply. Where there is none, family members apply to administer the estate.
What a letters of administration application involves
A practitioner guide by Tope Adebayo LP on Mondaq (29 May 2024), describing practice in Lagos, lists:
- an application form, signed, with a letter and the filing fees;
- the death certificate;
- details of the deceased's bank accounts, shares and property, with a certificate from each bank endorsed by that bank;
- at least two administrators;
- estate fees charged as a percentage of the estate's value (the guide does not state the percentage);
- two sureties with affidavits of means;
- an interview at the registry and a 21-day newspaper publication for anyone to object before the grant issues.
The same guide gives the order of priority among relatives: spouse, children, parents, full siblings, then half siblings and grandparents. Other states run similar processes with their own forms and fees; instruct a lawyer in the state where the property is. If there is a will, see writing a Nigerian will from the US for how wills made abroad are handled.
Step 2: taking part from the US
- As an administrator. You may need to sign forms, oaths or affidavits. These are usually signed before a US notary and authenticated (state certification, then the US Department of State at $20 per document on its services page, then the Nigerian mission), because Nigeria does not appear on the HCCH Apostille Convention status table.
- Through an attorney. If you will not be an administrator, a sibling in Nigeria can apply and you can give a power of attorney covering your interest; see making a Nigerian power of attorney valid from the US.
- Protecting the property meanwhile. Until the grant issues, nobody should sell or let the property as owner. Ask the lawyer to write to anyone occupying it, and keep rates and bills paid.
Step 3: moving the property into your name
After the grant, the personal representatives distribute the estate under the will or the intestacy rules. For land, the lawyer will advise how the transfer to you is documented and registered with the state lands registry. Under section 22 of the Land Use Act, transfers of a statutory right of occupancy need the Governor's consent, and section 26 voids transactions contrary to the Act, so ask whether consent is required for the vesting in your case and budget for it.
The US side
Is it income?
The IRS says foreign gifts and bequests are not subject to income tax, but reporting rules apply. Under the Form 3520 instructions (Rev. December 2025), a US person who receives more than $100,000 in a tax year from a nonresident alien individual or a foreign estate, including bequests, files Part IV of Form 3520, normally by 15 April, with extensions in line with your income tax return. The penalty for not filing can reach 5% of the amount per month, up to 25%, unless there is reasonable cause. A bequest of property counts at its value, so a house can cross the threshold on its own. See receiving an inheritance from Nigeria.
Your basis
IRS Publication 551 (Rev. December 2025) says the basis of inherited property is generally its fair market value at the date of death, or on the alternate valuation date if the personal representative chooses it. Get a written valuation as at the date of death from a Nigerian estate valuer now; it is far harder to reconstruct years later. Convert it to dollars at the rate for that date and keep the source.
Example
Example only, with illustrative rates. Your father bought a Lagos house for ₦8,000,000 decades ago. At his death it is valued at ₦240,000,000; at an illustrative ₦1,500 to $1, that is $160,000, your basis. You sell three years later for ₦300,000,000 at an illustrative ₦1,600 to $1, $187,500. Your US gain is about $27,500, not the much larger figure the old purchase price would suggest. Nigerian tax on the sale is a separate question; see US tax when selling Nigerian land.
Ongoing reporting
Nigerian real estate you hold personally is not reportable on Form 8938, according to the IRS's basic Q&A (reviewed 17 August 2026), but rent paid into a Nigerian account is income and the account may need FBAR or Form 8938 reporting. Basis in more depth: stepped-up basis on inherited Nigerian property.
Where Pryme fits
Estate fees, lawyer's charges and property bills are paid in naira. A Pryme Personal Account opened from the US holds dollars and naira, pays Nigerian accounts with Send, and can issue verifiable receipts through VerifyDoc.ai, useful when several siblings share the costs and want a record nobody can alter.
Questions people ask
Do I automatically inherit my father's house in Nigeria as next of kin?
No. The estate first needs probate (with a will) or letters of administration (without one) from the state High Court probate registry. The property then passes under the will or intestacy rules.
Do I pay US tax on a house I inherit in Nigeria?
The IRS says foreign bequests are not subject to income tax, but if you receive more than $100,000 in a year from a foreign estate you must file Form 3520. Tax arises later if you sell at a gain.
What is my basis in inherited Nigerian property?
Generally its fair market value at the date of death, under IRS Publication 551. Get a written valuation as at that date and convert it at that date's exchange rate.
Can I apply for letters of administration from the US?
You can take part through a Nigerian lawyer, signing documents before a US notary and authenticating them, or give a sibling in Nigeria a power of attorney.
Sources
- Daily Trust: Why next of kin cannot access a deceased's inheritance (10 Dec 2023) · accessed Oct 2026
- Mondaq (Tope Adebayo LP): Issuance of letters of administration in Nigeria, a practical approach (29 May 2024) · accessed Oct 2026
- IRS: Instructions for Form 3520 (Rev. Dec 2025) · accessed Oct 2026
- IRS: Publication 551 (Rev. Dec 2025), Basis of Assets · accessed Oct 2026
- IRS: Gifts from foreign person (updated 17 Apr 2026) · accessed Oct 2026
- Land Use Act, Cap L5 LFN 2004 (PLAC Laws of Nigeria) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.