Financial account reporting of foreign account by a beneficiary

[Anonymous]

Hi,

Myself and my daughters are US tax payers. My wife and I have couple of Fixed Deposits and a stock trading/brokerage account in India for which my daughter is a beneficiary. She would receive the assets eventually. The total amount is about 150K US Dollars. Annually, these accounts brings in less than USD 10K in interests/Dividends/returns. I am filing the Income tax Returns and paying taxes myself both in India and US for these interests/dividends/returns. These interests stay in India and not repatriated.

Does she have to report these Fixed Deposits accounts and the brokerage account in her 1040 form 8938 Form even though she is not paying taxes in India?

I accidentally submitted the info in 2023 returns and now I realize I did not need to report. Will it be a problem not to report this this year 2024?

Advice requested.

GKR

[SusanY1]

Since your daughter is a beneficiary and not a joint owner, she does not need to report the accounts.  Only you would need to report them on your own FBAR and/or 8938.

If you accidentally reported FBARs and/or Form 8938 for your daughters in 2023 and you don't report again this year, it will not be a problem.  It is normal for taxpayers to have different reporting requirements from year to year where this report is concerned. 

In the unlikely event that there's an inquiry about the report, you can explain it at that time.