# Help with Australian trust and US form 3520 and 3520-A



## Nimo956 (Mar 7, 2020)

Hi,

I am a US citizen who married an Australian citizen last year. We reside in NJ in the US.

His parents, who are Australian citizens, have set up a trust for him in Australia. This is what would be considered a revocable trust in the US, meaning that it is funded by them, and they own the assets and control the investment decisions. 

My husband is a beneficiary of the trust upon their death. He does not own the assets, has no control over the assets, and has received no distributions.

Does anyone know if we would have any tax liability in the US? Are there any reporting requirements? My cursory reading of the instructions for forms 3520 and 3520-A suggests we would not have to fill them out.


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## Moulard (Feb 3, 2017)

I am going to assume here that your husband is a US permanent resident rather than living in the US on a different type of visa. 

I imagine from what you are saying is that the trust structure in Australia is that of a discretionary trust (aka family trust).

Long and the short of it, you are right. So long as your husband is not a grantor, an owner or a trustee then I believe that there are no reporting requirements under § 6048 until such time as there is a distribution.

One thing to bear in mind is that as his parents come into their dotage, he may need to consider issues such as financial power of attorney. This could very well cloud the matter of control of the trust (and through that a level of ownership). 

For example with a power of financial attorney would he be able to act as a Trustee or an Appointer (if either of his parents are listed in the trust deed in either role)

Just something to bear in mind for the (hopefully distant) future.


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