Foreign Inheritance & Schedule B Line 8

[R_w1901]

It seems I cannot find a clear answer and it seems some similar questions here are answered partly contradictory. So here we go:

I (single) received a foreign inheritance from a non-us person of ~ 30k. I received the cash in 2024 and I decided to open a foreign account and transfer the inheritance to that account, where it still is today (receiving a small amount of interest). I understand the following:

• I need to file FBAR 114 (>10k)
• I do not need to file Form 8938 (<50k)
• I do not need to file Form 3520 (<100k)
• I add interest received on Schedule B, line 1a
• Schedule B, line 7a I answer yes & yes

I think above is correct, if not please correct.

My primary question however is related to Schedule B Line 8. I do not understand whether I need to answer Yes or No. I think I simply don't quite understand "foreign trust" in that respect and whether inheriting something from a person is considered a distribution from a foreign trust or similar?

Thanks,

R

[SusanY1]

Your understanding of everything that you've outlined is correct.  

You will also answer "no" to the question about a foreign trust.  Given that Form 3520 deals with both inheritance (foreign estates) and foreign trusts it seems reasonable to wonder if they are the same, but in this instance they are not.    

[R_w1901]

SusanY1, thank you for your fast response, it is appreciated.

One follow-up question. I did pay inheritance tax in that foreign country. Am I correctly assuming that I cannot claim that on my return?

[DaveF1006]

No. You won't be able to claim that on your tax return unless your inheritance income exceeded $13.99M.