You are correct, you do not include the number on on the Form 8938. That indicator is to inform the IRS that an account is listed on 3520 that would otherwise be on Form 8398.
You also do not need to check the box on Form 3520 for "excepted specified foreign financial assets". You have inherited a real asset, rather than a financial one.
This exception is for things such as branches of US banks abroad, US military banking facilities, Correspondent/Nostro accounts (a type of bank-to-bank settlement account), accounts held by governmental entities, and a few other oddities that aren't common for individual taxpayers.
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