Although not common, in some circumstances an inheritance paid to a New Zealand resident can be taxable as a distribution from a foreign trust.
In PUB00494 Income tax – Whether money or property received by New Zealand tax residents from overseas is income from a foreign trust, Inland Revenue considers the income tax treatment of amounts of money or property that New Zealand tax residents receive from a person overseas, including through inheritance. The following examples from PUB00494 are illustrative:
Consulation is open on PUB00494 until 19 June 2025.
References
Matters of Trust 
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