My daughter in the U.S. received a large inheritance from my foreign estate. Is that her tax problem too, even if the estate handled everything abroad?
I am asking because the estate administration is outside the United States, but one beneficiary is now a U.S. resident. The family assumed the foreign estate would handle any paperwork on its own side and that the U.S. beneficiary would simply receive the funds. Now someone mentioned Form 3520 and foreign bequest reporting, which caught everyone off guard.
The beneficiary is not worried about income tax on the inheritance itself so much as the information-return side. If the U.S. recipient has a separate filing obligation just because the bequest came from a foreign estate, we need to catch that before the deadline passes.
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