Technical topics regarding tax preparation.
9-Oct-2019 1:32pm
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Is a Form 3520 required for this event?
German citizen passes away and leaves $150K to her sister and her niece (mother & daughter). They are each inheriting $75K.
The niece is the executor and, as a matter of convenience, she has the $150K transferred into her U.S. bank account and then distributes the $75K to her mother.
The niece has exceeded the $100K reporting limit, but only $75K of that was hers. Do we need to file a Form 3520 for the niece?
10-Oct-2019 1:17am
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The foreign estate is reported on an 8938. Signature authority on the FBAR. I don't think a 3520 is required, but I see no harm in filing one to be cautious.
PS – Greeting from London, England. Grey and rainy ...
10-Oct-2019 9:29am
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Thank you, Guya. I would like to confirm your reply. Are you saying the Form 3520 is not required because the inheritance is less than $100K regardless of the amount (>$100K) transferred into her account?
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