FBAR confusion for life insurance reporting

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puzon23
Posts: 61
Joined: Fri Apr 02, 2010 9:04 pm

FBAR confusion for life insurance reporting

Post by puzon23 »

Hi All,

Was wondering if someone can clarify this issue for me.

My father lives abroad and has a life policy for him. It is the type of insurance that has cash value so like an account that accumulates capital gains.

I am listed as beneficiary in case of his death. My understanding is that I do not have to report such account on FBAR or 8938.

So to make it absolutely clear. I have no right to this account or its money at the present time at all, zero, nothing. I have no signatory rights, cannot withdraw anything nor take out a loan from the accumulated cash value. The only thing that I have the right to is in case my father dies, I will get the money and will gain the signatory right to this account.

So, I think this is a case when I do not have to report this account, correct? Anyone care to double assure me in my thinking?

Thanks!
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