8938 and FBAR reporting of undistributed inheritance and interest generated from it

[Stickham]

Background 
My Canadian uncle passed away and left me an inheritance.  The money is being held (and is generating interest) in a bank account in Canada (probably in the name of the estate).  Once Revenue Canada issues a clearance certificate, the portion of the inheritance that my uncle wanted me to have will be distributed to me. I asked the company acting as the executor to wire it to my US account when that time comes. 

A few months ago, I received a NR4 listing the interest that was generated during 2024.  I did not actually receive it yet since the inheritance has not yet been released, I assume that the interest was just kept in the estate bank account so that when I do get my distribution, it will include that interest. 

Questions 

1. Do I include that interest as income on Schedule B? 
2. Since I am not the only beneficiary, and since I don’t have any signing authority over the estate account (and it’s probably not even in my name),  and since I have no real way of knowing what the highest value that the estate account had in it during the year, how am I supposed to complete the 8938?  I mean, I know that I have an “interest” in that account, but the value in that account also includes other beneficiaries' portions, so do I take the highest value and remove the other beneficiaries portion - reporting only mine?  Also should I leave the account number blank or enter ‘Unknown’.
3. Do I have to report this account on the FBAR?

[pk]

@Stickham 

Have a hard time with this 

(a) You say the executor  has not distributed the funds , awaiting clearance  from the authorities  and at the same time you have received an NR-4  ( which  as I see the form) is notifying that an amount of  funds/interest has been  credited to the account of a Non-Resident.

(b) You say have no knowledge of the actual/final amount to be distributed nor how the monies are held -- in individual accounts  or ( more likely in the name of the Estate ).

Strongly suggest that you contact the executor to understand the situation.

From the NR-4 , ( and assuming that it is ONLY in your name ),  it seems that 

         1. you have  an account in your name , and where the monies are sitting --like a  suspense account  or escrow account, 

          2. Interest earnings  for the monies in this/that account is being recognized. 

          3. It is just awaiting  some conditions to be filled before  being released to you.

 (c) IMHO, this  qualifies as  constructive receipt  esp. since Canada Tax authority ( and you ) are being informed  through NR-4.  Thus you need to recognize this  interest earning on your return. 

 Cannot comment on whether  this type of account comes under  FBAR and/or FATCA regs. mostly because you have no control/signature authority/  over the account.  Note that depending on the quantum of the distribution, there may be need for you to file a 3520  for tax year when the funds are released to you.   See here -->  About Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain For...

Is there more I can do for you ?