My wife´s mother died in 2019 in Germany. She was not an US citizen and no US resident. She had a burial benefit insurance over about $6000, the beneficiary is my wife. We did not receive the money yet, as the German IRS still needs to determine, if we have to pay inheritance tax in Germany (we will not but it is how it is). So they stopped the payout from the insurance until they reach a conclusion.
As far as I know, this it not taxable income (the actual burial costs were even higher anyways).
But I have the following questions:
1. does this insurance need to be reported as an account in FBAR?
2. when do we report it on form 3520, in 2019 when e received it "on paper" or in 2020 when we receive it in our bank account?
Thank you
