Inheritance from abroad for a minor

[rik89]

What is the name of your state?CA

My son who is under 18 is going to receive an inheritance from the UK that is over $100K. I know that amounts over $100K need to be reported on form 3520, but the wire transfer will be to my US bank account. As it relates to the form did my son receive the money or did I receive it? Who's name and SSN should be on the form?

 

[LdiJ]

What is the name of your state?CA

My son who is under 18 is going to receive an inheritance from the UK that is over $100K. I know that amounts over $100K need to be reported on form 3520, but the wire transfer will be to my US bank account. As it relates to the form did he receive the money or did I receive it? Who's name and SSN should be on the form?

Why wouldn't you set up a bank account for your son to receive the inheritance? Why in the world would you have it come to your bank account?

 

[rik89]

Forget to mention. My son has Down Syndrome so is not able to have his own bank account. I will have to manage his money going forward.

 

[Zigner]

Forget to mention. My son has Down Syndrome so is not able to have his own bank account. I will have to manage his money going forward.

Does your son receive any government benefits? If yes, then you really really need to look in to a special needs trust.

 

[rik89]

He will get government benefits next year and I will set up a special needs trust prior to that. First step is to move the funds to the US.

 

[LdiJ]

He will get government benefits next year and I will set up a special needs trust prior to that. First step is to move the funds to the US.

Then you set up a custodial bank account for your son to receive the money. Again, you really don't want the money coming into YOUR bank account. It will just complicate things for you.

 

[Taxing Matters]

What is the name of your state?CA

My son who is under 18 is going to receive an inheritance from the UK that is over $100K. I know that amounts over $100K need to be reported on form 3520, but the wire transfer will be to my US bank account. As it relates to the form did my son receive the money or did I receive it? Who's name and SSN should be on the form?

Then set up a bank account in his name with you as custodian or trustee. That's a common thing to do with kids under 18 so pretty much every bank will offer that and be familiar with how to set that up. Or get the special needs trust set up beforehand and have the trust open a bank account to receive the money.

Since is it his inheritance the Form 3520 should have his information on it, not yours.

 

[rik89]

That's great advise. I was not aware of these custodian accounts. I found that Capital One bank has a youth account that has the youth as the primary and reporting to the IRS based on their snn. I really appreciate the advise. I will set up a SN trust sometime, but i'm not in a hurry as there are more restrictions on how many is spent.