# 3520 Questions



## FrustratedMajor (Apr 6, 2017)

Do the parents of an infant child need to file form 3520 for the child’s savings account in a bank located in a foreign country? 

The bank has said that the child is the “tax registered owner” of the youth savings account that is “held in trust by the parents”. The parents have signing authority on the account, and a grandparent is listed as the official trustee. Does the "held in trust" mean that it is a trust for U.S tax purposes? 

There are a few more related questions, but they hinge on if the savings account is trust or not, so they can wait. Very stressed right now...


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## Moulard (Feb 3, 2017)

My view is that it is likely to be more in character of a custodial account rather than a proper trust. Unless of course there is some form of trust deed involved.

As a foreign custodial account it would still have to be considered under FBAR and Form 8938 filing thresholds and requirements.


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## iota2014 (Jul 30, 2015)

FrustratedMajor said:


> The parents have signing authority on the account, and a grandparent is listed as the official trustee. Does the "held in trust" mean that it is a trust for U.S tax purposes?


My suggestion: If the official trustee lives in the country where the trust is registered and is not a US person, then:

-if there's more than 10K in the account, file an FBAR (because you have signature authority); describe it simply as a savings account

- if there's less than 10K, forget about it.


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## FrustratedMajor (Apr 6, 2017)

Very helpful. No trust deed involved as best as known, and the official trustee lives overseas. Good point about the FBAR as it is needed when combined with other overseas accounts held by the parents. Thanks!


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