Since the property is located overseas, if it is given via the estate, then the Form 3520 is required. If it is given as a gift (rather than passed along through the will), then only Form 709 is required.
This one is a bit of a different situation but the key here is that the 3520 is required for a gift from a foreign person or a foreign estate, which comes into play if the property is willed to your son. This is because there is then a foreign entity (the estate) involved in the process.
If you give the property and keep a life estate, I don't think a 3520 is needed now. But your son will probably need to file one in the future. However, the intent of the form is really to capture assets that weren't subject to Form 709 filing - so it's kind of a duplication of efforts if you've already filed (or will file) Form 709 to report the asset transfer.
The one nice thing about Form 3520 is that it doesn't involve any tax or the use of any gift or estate tax unified credits - it is merely a reporting form. It is also a bit intimidating to look at but when a trust isn't involved, the only parts that need to be completed are the top of the page, and Part IV on the last page. This makes it relatively simple (as tax forms go at least.)
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