My mother, a US citizen living in the US, inherited a UK pension (SIPP), which has a UK pension management firm (Dentons) as pension trustee. My understanding is that the UK trustee essentially owns the pension for the benefit of my mother. The pension funds are invested through a US brokerage firm based here in the US.
I understand the pension needs to be reported on Form 8938 (note: no withdrawal made from the SIPP in 2018); however, I have the following questions:
- Am I correct in thinking that the UK pension/SIPP should be reported on the 8938 as an Other Foreign Financial Asset (and not a Foreign Financial Account) ? If so, is the asset an interest in a Foreign Entity, or not? Depending on the answer, the information needed to be entered for the Foreign Entity within TurboTax changes. Also, what do I enter as the Foreign Entity, i.e., is it information for Dentons as trustee, or the US brokerage firm?
- Or, should the pension be reported as a Foreign Financial Account on the 8938, in which case only Dentons would appear to be the company to report, as the brokerage firm is a US institution. However, I am not sure this makes much sense, given the funds are not in an account located in the UK.
Many thanks in advance for your help!
EM
