FAQ
Do I need to report a foreign inheritance on Form 3520?
Learn when a US person must report a foreign inheritance on Form 3520, how the $100,000 threshold works, and which records to keep.
A foreign inheritance is generally not subject to US income tax when you receive it, but you may still need to report it on Form 3520 if the amount exceeds $100,000 from a non-resident alien or foreign estate. The foreign estate itself may owe US estate tax if the decedent was a US citizen or domiciliary, or if the estate held US situs assets. If you are a covered expatriate, special inheritance tax rules under Section 2801 may impose a tax on gifts or bequests you receive from that person. Keep detailed records of the inheritance, including appraisals and currency conversion rates. Consult a cross-border estate attorney if the estate exceeds the unified credit threshold. Foreign-country legal, tax, valuation, banking, remittance, title, and local-filing conclusions are outside FileAbroad's scope; confirm those with the relevant foreign authority and a licensed local professional.