thebrit123

I just filed IRS form 3250 declaring part of my mother's estate which was over $100,000. Decided to send it certified mail and can see that they received the form.

Does anyone know whether the IRS lets you know about the form being processed etc? Want to know that they are not going to tax my inheritance as it should not be.

nun

Which section did you fill out?

thebrit123

I only filled out Part IV.

md95065

Don't expect any response from the IRS. If they think that you owe them money they will contact you sometime in the next few years.

nun

OK, just be careful how you phrase things. Part IV is to record gifts and bequests you received from foreign persons. So you'd only include your inheritance from your mother's estate, I assume that's what you meant. Also you only need to file the 3250 if the bequest is over $100k, but you must include the full amount, not just the amount over $100k.

As there is no US tax on inheritances from foreign persons and 3250 Part IV is for informational purposes only you probably won't hear from the IRS and don't worry about it. One thing to be careful of with foreign inheritances is if the inheritance includes any gains earned while in probate as those gains would be US taxable.

thebrit123

Thanks. The amount was over $100,000 and wired from the UK probate executive in two amounts that totaled over $100,000. The monies were from my mother estate which was divided equally between us three siblings. I included both the wire transfer amounts and even gave them copies of the Bank wire transfer statements. Also included a nice letter, a copy of my mother's will and emails from the UK probate executor.

I assume that the IRS would tell you if you have filled out the form wrong or if they need more info. I have to help my younger sister fill out the same form so don't want to make mistakes with her filing.

nun

I think you've gone above and beyond......not sure I would have provided so much additional documentation as it isn't required. Don't worry, this is not a big deal, you seem all set.

robin1234

I sometimes think the IRS have way more info from us all than they can handle. I always imagine their place is like the Stasi Archive but worse.

thebrit123

Thanks. Was just trying to make sure that they understand the reasons for the amount over $100,000 as I don't like dealing with bureaucracy.

nun

Bureaucracies often don't know what to do with additional information. They work best when you follow the rules and only provide the information requested on the forms provided. The IRS has all the info it needs on the 3250; it's a bequest from a foreign person and they have your address if they need to contact you. Anyway I think you are ok, but in future I'd only provide the IRS with what the specifically require.

Cook_County

Don't forget that the foreign estate is an 8938 reportable asset too and you may have to report income arising during the administration period as well as possibly file FBARs.

nun

I assume that the 8938 and FBAR requirement comes from reasoning that the beneficiary has an interest in the foreign accounts while in probate. I wonder how that is different from being a named in the will of a foreign person. Surely that's an interest in an foreign estate, but I'm sure there's an explanation of where the rabbit hole stops. I'm still not convinced about the applicability of 8938 or FBAR until probate is over, anyway if you put the foreign assets on 3250 8938 is not required.

lieneil

Great info as I am just starting 3520. Question: anyone know how UK joint accounts should be handled? In my case, the parent had joint bank account with adult child and under UK/Scottish law, upon parent death, child automatically got the entire account balance outside the estate. How is this treated in US tax world, specifically for the 3520 Appreciate any advice. Many thanks.

Steve_

Um, don't you all mean form 3520?

lieneil

Yep, you grumped right! Notice in web search that 3520/3250 confusion is quite common. Somethin' about the numbers or what?