Life insurance with cash surrender value - how to report

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

Life insurance with cash surrender value - how to report

Post by puzon23 »

Hello All,

I have a question about a life insurance with cash surrender value for FBAR.

Which value do you report?

Let's say that the insurance payout is $500,000 and the cash surrender value is $25,000. On the FBAR do you report the value of the account as $500,000, $25,000 or the sum which is $525,000?

Also, for 8938 which value triggers the necessity to file, the payout, cash surrender or the sum?

This is all given that no other foreign account exists to make it a simple case that focus on insurance account only.

Hope to hear from someone on this. Thanks!
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