A relative based in the UK recently purchased a policy which was placed under a discretionary gift trust. The result of this is that the policy benefit is paid by the company to the trustees as and when the benefit arises. As this is a whole of life contract, the benefit would only be payable on death of the life assured or early surrender or partial surrender.One of the beneficiaries listed on this policy is a US citizen.
Form 3520 is generally used to report gift/foreign trust income. Would this be considered to income from a foreign trust or a gift? What documentation would be required by the IRS, for example, some kind of statement such as Foreign Grantor/Non-Grantor Trust Beneficiary Statement.
2006-08-06
23:49:08
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1 answers
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asked by
legalquandry
1
in
United States