I hope you folks can offer clarity about the informational forms I need to file to the IRS. Here's the situation: my parent was a dual(Can/US) citizen, resident in Canada, who died in 2024. I am a dual citizen resident in the US. I am the executor of the will, and the sole heir. The amount of the estate (and the amount of my personal inheritance) exceeds the $100K threshold for filing a 3520, but falls far below the threshold for US estate tax, so I am confident that no tax will be due on the US side. The tax preparer in Canada will complete both Canadian and US returns for my parent's final year of life in both countries, and I'm under the impression he'll file an additional return for the estate (in Canada only). I've gone through the probate filing--probate is granted and all fees paid.
My questions:
1. Since the value of my inheritance (most of it a home in Canada) exceeds $100,000, I assume I need to file form 3520 with my own US tax return. QUESTION: When do I file this? Do I base the "date of gift or bequest" on the date of death (in 2024), or the date probate was granted (in 2025), or some other date?
2. What is my responsibility re: form 3520-A? Should I file a "substitute" 3520-A as heir? Do I need to file a separate 3520-A in my role as executor?
The Canadian tax man, though he does US returns as well, doesn't know the answers. I would be greatly appreciative if someone here does know and is willing to share. I'd really like to avoid any mistake, but I'd also like to avoid an expensive consultation with a tax specialist when it's just about a couple of informational forms and no tax is involved.
Cross-border inheritance (form 3520 questions)
Moderator: Mark T Serbinski CA CPA