You will need to file form 3520.
U.S. persons (and executors of estates of U.S. decedents) file Form 3520 to report:
- Certain transactions with foreign trusts.
- Ownership of foreign trusts under the rules of sections Internal Revenue Code 671 through 679.
- Receipt of certain large gifts or bequests from certain foreign persons.
Your Parents need to file Gift Tax.
Nonresidents not citizens of the United States are subject to gift and GST taxes for gifts of tangible property situated in the United States. A person is considered a nonresident not a citizen of the United States if, at the time the gift is made,
(1) was not a citizen of the United States and did not reside there, or
(2) was domiciled in a U.S. possession and acquired citizenship solely by reason of birth or residence in the possession. Under certain circumstances, they are also subject to gift and GST taxes for gifts of intangible property. See section 2501(a).
If you are a nonresident not a citizen of the United States who made a gift subject to gift tax, you must file a gift tax return when any of the following apply.
- You gave any gifts of future interests.
- Your gifts of present interests to any donee other than your spouse total more than $16,000.
- Your outright gifts to your spouse who is not a U.S. citizen total more than $164,000.
@SpaghettiEd
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