Background
My Canadian uncle passed away and left me an inheritance. The money is being held (and is generating interest) in a bank account in Canada (probably in the name of the estate). Once Revenue Canada issues a clearance certificate, the portion of the inheritance that my uncle wanted me to have will be distributed to me. I asked the company acting as the executor to wire it to my US account when that time comes.
A few months ago, I received a NR4 listing the interest that was generated during 2024. I did not actually receive it yet since the inheritance has not yet been released, I assume that the interest was just kept in the estate bank account so that when I do get my distribution, it will include that interest.
Questions
- Do I include that interest as income on Schedule B?
- Since I am not the only beneficiary, and since I don’t have any signing authority over the estate account (and it’s probably not even in my name), and since I have no real way of knowing what the highest value that the estate account had in it during the year, how am I supposed to complete the 8938? I mean, I know that I have an “interest” in that account, but the value in that account also includes other beneficiaries' portions, so do I take the highest value and remove the other beneficiaries portion - reporting only mine? Also should I leave the account number blank or enter ‘Unknown’.
- Do I have to report this account on the FBAR?
