Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

fbar for child

fbar for child

Old Feb 8th 2020, 8:21 pm
  #1  
Just Joined
Thread Starter
 
Joined: Jun 2018
Posts: 7
B488 is an unknown quantity at this point
Default fbar for child

My wife and I have been US resident for a few years and always kept up with our personal FBARs and foreign interest reporting on tax returns.

Problem: when our son was born in the US in 2017, his Grandpa setup a child saver account with a bank in the UK. It only had a few hundred quid in it then. Grandpa is a named account holder but my son is also named. And you guessed it, I just learned that Grandpa topped up the account 2018 to a level which significantly exceeds the FBAR threshold. He never mentioning it to me, and I don't even have direct access to the statements as my name isn't on the account, and Grandpa had given his own address as that of my son when he opened the account. The account seems only loosely attached to my son, Grandpa is free to remove money at any time, and my son is clearly unable to because he is two years old. What to do now? a) Do we even need to file the FBAR and b) will the few months of lateness be an issue?
B488 is offline  
Old Feb 9th 2020, 9:38 am
  #2  
BE Enthusiast
 
Joined: Nov 2012
Posts: 823
Cook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond repute
Default Re: fbar for child

Use the delinquent FBAR procedure for your son if needed. Just make sure Grandpa doesn't invest in any PFICs for your son...
Cook_County is offline  
Old Feb 14th 2020, 12:20 am
  #3  
Sasstronaut
 
livinginnyc's Avatar
 
Joined: Aug 2016
Location: Manhattan, NYC
Posts: 1,301
livinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond reputelivinginnyc has a reputation beyond repute
Default Re: fbar for child

As Cook_county said - the delinquent FBAR procedure should work, be sure to explain the delinquency and back story for context; they will want to see interest rates on the account and should file and send a confirmation 2 days after it's filed.
livinginnyc is offline  
Old Feb 20th 2020, 3:32 am
  #4  
Just Joined
 
Joined: Jan 2017
Posts: 25
mv72 is an unknown quantity at this point
Default Re: fbar for child

Just a question about the FBAR am I right in saying that you would file it if you have a foreign financial account during the year that exceeded $10k or when all foreign accounts added exceeded $10k then you would complete the FBAR?

Also when completing the fbar do you only list your foreign bank & foreign pensions accounts and do not include your US bank and US work pension accounts?

​​​
mv72 is offline  
Old Feb 20th 2020, 11:38 am
  #5  
BE Forum Addict
 
Joined: Aug 2013
Location: Athens GA
Posts: 1,917
MidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond repute
Default Re: fbar for child

Originally Posted by mv72 View Post
Just a question about the FBAR am I right in saying that you would file it if you have a foreign financial account during the year that exceeded $10k or when all foreign accounts added exceeded $10k then you would complete the FBAR?

Also when completing the fbar do you only list your foreign bank & foreign pensions accounts and do not include your US bank and US work pension accounts?

​​​
Yes it only relates to foreign accounts.

The methodology is:
- determine the maximum sum in local currency for each account for the year
- convert those sums to USD using the exchange rate for December 31 here: https://www.fiscal.treasury.gov/repo...e/current.html
If that USD total is $10k or over you need to report.

This can produce some weird results eg if you only have $6k but move it from one account to another, the total is $12k and you have to report, even though you have only ever had $6k.

Last edited by MidAtlantic; Feb 20th 2020 at 11:47 am.
MidAtlantic is offline  
Old Feb 20th 2020, 11:50 am
  #6  
Just Joined
 
Joined: Jan 2017
Posts: 25
mv72 is an unknown quantity at this point
Default Re: fbar for child

Originally Posted by MidAtlantic View Post
Yes it only relates to foreign accounts.

The methodology is:
- determine the maximum sum in local currency for each account.
- convert those sums to USD using the exchange rate for December 31 here: https://www.fiscal.treasury.gov/repo...e/current.html
If that USD total is $10k or over you need to report.

This can produce some weird results eg if you only have $6k but move it from one account to another, the total is $12k and you have to report, even though you have only ever had $6k.
Interesting so only list foreign accounts when doing the form you don't additionally include US bank accounts etc?

Last edited by mv72; Feb 20th 2020 at 12:08 pm.
mv72 is offline  
Old Feb 20th 2020, 12:03 pm
  #7  
BE Forum Addict
 
Joined: Aug 2013
Location: Athens GA
Posts: 1,917
MidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond reputeMidAtlantic has a reputation beyond repute
Default Re: fbar for child

Originally Posted by mv72 View Post
Interesting so only list foreign accounts when doing the form you don't additionally include US bank accounts etc? I assume you list all accounts even if they closed during the year for example if your old employer changed their pension provider you would list both previous and current accounts that it was held in throughout the year.
Yes only foreign accounts.
Yes all accounts that you have had for that calendar year, even if you had one for just one day!
MidAtlantic is offline  
Old Feb 20th 2020, 12:32 pm
  #8  
Just Joined
 
Joined: Jan 2017
Posts: 25
mv72 is an unknown quantity at this point
Default Re: fbar for child

Originally Posted by MidAtlantic View Post
Yes only foreign accounts.
Yes all accounts that you have had for that calendar year, even if you had one for just one day!
No worries, thank you
mv72 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.