Thank you. This is basically as I thought but wanted to be sure I wasn't missing anything important.
Just to be sure....
There's money in a bank account in Uruguay. Under law, the son has inheritance rights to it. IF I transfer the amount to him FROM THE US, there's nothing to report to the US, not even FBAR since the account in Uruguay will never be in his name.
It's only the amount that is applicable to half the house, which will be the value as of the date of death, that will go on Sched D.
Now to convince the bureaucracy in Uruguay.
