Reporting inheritance from Foreign Trust

[tlanisek]

My husband is a resident alien from the UK and we file a joint return.  He has a bank account in the UK and we are filing the FBAR separately from our tax return.  His mother (UK citizen) passed away in the UK and in 2019 he received his share of her estate from the trust and deposited it into his UK bank account.  Does this require us to submit a Form 3520 or any other additional forms?

[KurtL1 · Accepted solution]

Yes, you required to file Form 3520 because of the inheritance. You have filed the FBAR report, and you will also may be required to file Form 8938 with your return. 

The requirements to file Form 8938 are:

Married taxpayers filing a joint income tax return. If you are married and you and your spouse file a joint income tax return, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year. Married taxpayers filing.

To file Form 8938, you would:

1. Enter form 8938 in the Search Magnifying Glass in the upper right hand corner of your screen.
2. Select Jump to form 8938.
3. Answer the questions on the screens.