My in-laws, who are citizens of a Scandinavian country, have suggested it might be beneficial for us to open a checking account at their bank to use as the initial receptacle for inherited assets they intend to leave to us. Since we would immediately transfer those assets to the U.S. and declare them, are there any advantages or drawbacks to an offshore account, versus their estate's executor transmitting funds directly to our U.S. bank?
You'll need to sign in or create an account to connect with an expert.
If your foreign bank account contains over $10,000 for even one day, you would have to file an FBAR report. You might also have to file Form 8938 with your tax return if the amount in the account exceeds certain thresholds for even one day, or on the last day of the year. The thresholds for Form 8938 depend on your filing status.
Report of Foreign Bank and Financial Accounts (FBAR)
Summary of FATCA Reporting for U.S. Taxpayers
Besides the reporting requirements, there might be other disadvantages that I am not aware of. I also don't know what advantages there might be, if any, to having the foreign account. You might want to consult a lawyer and a tax professional who are familiar with the rules for international payments.
Thanks! It seems like it adds an extra step and needless additional IRS scrutiny, but we'll see whether there's some advantage we're missing.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
jakeqiao
Returning Member
mpapadop
Level 1
andrewsjef
New Member
hermannkaty
New Member
dac-chapman
New Member