I understand that a U.S. taxpayer is required to file a Information Return [TD 90-22.1] to the Treasury if he has a foreign financial account over $10K. My Canadian relative is thinking of adding my name to his account as a Transfer Upon Death. So, if I am NOT a signor on that account, do I need to file that Information Return? TIA
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You are required to file TD 90-22.1 if you have a financial interest in a foreign account with assets of more than $10,000 or you are an authorized signor. I don't believe the facts provided above obligate you to file TD 90-22.1. See the explanations of financial interest and signature authority on page 3 of the form.
A TOD designation does not give you ownership or control of a foreign account while the account holder is alive. You will have to file TD90-22.1 after the account holder dies and the account passes to you. Ira Smilovitz
But does the fact that I would "inherit" the account be considered an "interest" in the account? TIA
I think that is too hypothetical. I hope it won't happen, but you could be hit by a truck tomorrow. That will end your chances of inheriting.
-- Best regards Han email address is invalid
Not an interest, merely an expectency.
Stu
I would say no: your relative can remove you.
Seth
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