Foreign bank account, inheritance, and form 8938, 3520, FinCEN form 114

Forum|Forum|2 months ago
May 15, 2026
1 reply
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After my Mom (not a US resident) passed away in a foreign country, her foreign bank account was frozen. Last year when I completed inheritance by closing her foreign bank account, my Mom’s bank paid me the balance plus the interests generated during the frozen period, and I deposited everything into my own foreign bank account.

Q1. For US income tax, I know as a US citizen I must include interests from my own foreign bank accounts into my schedule B. Should I also consider the above interests (during account frozen period) paid by my Mom’s foreign banks as my interest income in US, and therefore itemize them into my schedule B?

With my own foreign bank accounts, I already exceeded the thresholds so that I must file form 8938, 3520, and FinCEN form 114.

Q2. For form 8938, do I include MY own foreign bank accounts ONLY, and NOT those interests (during account frozen) paid by my Mom’s foreign bank? e.g, when calculating aggregated interests of foreign bank account/asset (part III Line 13, 14)?

Q3. Same question for form 3520 and FinCEN form 114, do I include MY own foreign bank accounts ONLY (and not my Mom’s already-closed foreign bank accounts)?

Thanks.

Kong

Best answer by pk_

@likong88 , I am so sorry for your loss.

(a) When and where did your mother pass ? Was she a citizen/resident of that country? I ask in case there is any tax treaty considerations.

(b) For US income tax, I know as a US citizen I must include interests from my own foreign bank accounts into my schedule B. Should I also consider the above interests (during account frozen period) paid by my Mom’s foreign banks as my interest income in US, and therefore itemize them into my schedule B?

I have a small bit of uncertainty here ----assuming that the bank/financial institution froze the account till the settlement of the will/probate, the interest earning may or may not belong to you. It may belong to the estate and therefore taxed at the estate level ( that country's law prevail here ). On the other hand if you wish to recognize the interest earning as monies earned by you, you are at liberty to do so. But please first check with the lawyer that is /was handling the probate of the decedent.

And generally if you meet the eligibility/threshold for the forms FinCen 114 ( FBAR), IRS 8938 and 3520 on your foreign account ( as a result of the influx of the inherited amount ), you need to file those forms.

(c) For form 8938, do I include MY own foreign bank accounts ONLY, and NOT those interests (during account frozen) paid by my Mom’s foreign bank? e.g, when calculating aggregated interests of foreign bank account/asset (part III Line 13, 14)?

For the forms 114, 8938 you use the resultant position , assuming that the transfers were effected during the tax year under consideration. Form 3520 covers ONLY the inherited amount ( whether deposited into a foreign account or not ).

(d) Same question for form 3520 and FinCEN form 114, do I include MY own foreign bank accounts ONLY (and not my Mom’s already-closed foreign bank accounts)?

Please see my response to your question 2 -- my para (c).

Does this make sense ? Is there more I can do for you ?

Again , please accept my condolences for your loss.

P

pk_

Answer

Level 15

@likong88 , I am so sorry for your loss.

(a) When and where did your mother pass ? Was she a citizen/resident of that country? I ask in case there is any tax treaty considerations.

(b) For US income tax, I know as a US citizen I must include interests from my own foreign bank accounts into my schedule B. Should I also consider the above interests (during account frozen period) paid by my Mom’s foreign banks as my interest income in US, and therefore itemize them into my schedule B?

I have a small bit of uncertainty here ----assuming that the bank/financial institution froze the account till the settlement of the will/probate, the interest earning may or may not belong to you. It may belong to the estate and therefore taxed at the estate level ( that country's law prevail here ). On the other hand if you wish to recognize the interest earning as monies earned by you, you are at liberty to do so. But please first check with the lawyer that is /was handling the probate of the decedent.

And generally if you meet the eligibility/threshold for the forms FinCen 114 ( FBAR), IRS 8938 and 3520 on your foreign account ( as a result of the influx of the inherited amount ), you need to file those forms.

(c) For form 8938, do I include MY own foreign bank accounts ONLY, and NOT those interests (during account frozen) paid by my Mom’s foreign bank? e.g, when calculating aggregated interests of foreign bank account/asset (part III Line 13, 14)?

For the forms 114, 8938 you use the resultant position , assuming that the transfers were effected during the tax year under consideration. Form 3520 covers ONLY the inherited amount ( whether deposited into a foreign account or not ).

(d) Same question for form 3520 and FinCEN form 114, do I include MY own foreign bank accounts ONLY (and not my Mom’s already-closed foreign bank accounts)?

Please see my response to your question 2 -- my para (c).

Does this make sense ? Is there more I can do for you ?

Again , please accept my condolences for your loss.