1. The beneficiary is subject to FBAR if the fund is transferred from the
deceased's bank account (or estate account) to a bank account under the beneficiary's name. If the fund is transferred from deceased' bank account to the executor's account, and then the executor wire the fund to U.S., no FBAR seems necessary.
2. Gift tax. If the
deceased is not a U.S. person, no gift tax issue. Form 3520 is required if over $100,000. I use Form 3520 even under $100,000 as a defense. ------------------------------
Ryan Zhang, CPA
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Original Message:
Sent: 11-09-2020 05:40 PM
From: Debbie Zelen
Subject: Inheriting a Foreign Bank Account
Hi All,
U.S. citizen living in NY is the beneficiary of a bank account in China with an estimated value of $40,000 USD. The executor of the estate will be in China and can represent the beneficiary at the bank. They intend to have the funds transferred to the account(s) of relatives living in China. Does this subject Taxpayer to FBAR filings? And gift tax returns if split less than 3 ways? Thanks for any light you can shed on this matter.
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Deborah J. Zelen, CPA
Melville, NY 11747
917-923-5331
debbie@djzcpa.com
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