Hello,
My US relative inherited a bank account and a real estate property from their relative (who was not a US citizen) who had passed away last year. As far as I know, they inherited the account and property December of last year, and was the executor of the estate. The property passed ownership to my relative and will not be used as a rental. I think this is what they would need to do:
1. List both on Form 3520, part IV. I assume the combined value of both would exceed $100k.
2. List only the bank account in FBAR if the value of the bank account is over $10k.
Please correct me if I'm wrong or am missing anything, thanks! However, I'm very much unsure about Form 8938 and am confused about the wording in Part IV: "If you reported specified foreign financial assets on one or more of the following forms, enter the number of such forms filed. You do not need to include these assets on Form 8938 for the tax year." Form 3520 is one of the listed forms.
In the scenario where the inherited bank account exceeded the threshold of $50k: Since the bank account is listed in Form 3520, is Form 8938 still necessary? It would otherwise have been the only asset listed. Do they provide a mostly blank 8938 with Parts I, II, III, V, and VI blank, but with "1" filled in for "Number of Forms 3520" in Part IV?
Many thanks!
