Foreign Inheritance & FBAR question

Does anyone know what classifies as a foreign inheritance?  Does it only count if there is a will?  Or is it still considered an inheritance if it was property owned by parents who passed and then the children had rights to it but the parents had no will? I'm trying to determine if funds received from the sale of a parents home is considered an inheritance and if so, what are the tax implications if the asset was a foreign asset.  I read online and it seems like if it's a foreign inheritance from non-us asset/non-us funds, it may not be taxable...Anyone know if that is correct and if so, does it still need to be reported?  Would that require FBAR if the asset was inherited?

Also for FBAR...if you file joint tax returns, do you report accounts that each person has with a balance over 10k or is it total of joint accounts so say husband has account with 5k and wife has account with 5k do they have to do FBAR reporting b/c the total is 10k?

Where are you Resident? What is your citizenship? Where is the estate being probated?

From personal experience while living in the USA and having parents etc die in the UK leaving property.

1) Regardless of a will or not an inheritance is still an inheritance after it is distributed.
2) The estate pays any inheritance due before it is distributed to the heirs. In our cases the house was sold before the proceeds were distributed between the children.
3) If the house is not sold and the heirs become joint owners then the house is valued at the time of the distribution. If it is subsequently sold then capital gains taxes may be due on the increased value.
4) receipt of the funds by the person in the USA is not taxable by the USA as any inheritance taxes due are paid to HMRC by the “estate”
5) If the funds are sent directly to the USA person’s bank account in the USA then no FBAR report is required since the person never had signature authority over the funds in a foreign bank account.  In our case we have a UK bank account so the funds went into our UK account and were reported on our annual FBAR.
6) If the only foreign account is a joint account then only 1 FBAR is needed, esigned by both. Otherwise individual FBARs are needed to report the individual foreign accounts.

This is not professional advice by any means...

Where are you Resident? What is your citizenship? Where is the estate being probated?

From personal experience while living in the USA and having parents etc die in the UK leaving property.

1) Regardless of a will or not an inheritance is still an inheritance after it is distributed.
2) The estate pays any inheritance due before it is distributed to the heirs. In our cases the house was sold before the proceeds were distributed between the children.
3) If the house is not sold and the heirs become joint owners then the house is valued at the time of the distribution. If it is subsequently sold then capital gains taxes may be due on the increased value.
4) receipt of the funds by the person in the USA is not taxable by the USA as any inheritance taxes due are paid to HMRC by the “estate”
5) If the funds are sent directly to the USA person’s bank account in the USA then no FBAR report is required since the person never had signature authority over the funds in a foreign bank account.  In our case we have a UK bank account so the funds went into our UK account and were reported on our annual FBAR.
6) If the only foreign account is a joint account then only 1 FBAR is needed, esigned by both. Otherwise individual FBARs are needed to report the individual foreign accounts.

This is not professional advice by any means...

It would be funds received by US citizens for property outside of US, but this gives me some idea of the process, thank you.  The parents died a while ago and the children took joint ownership, but I'm not sure if all of them were on the Deed, so it seems like they need to figure out how or what tax was paid if any to the foreign country to determine what would need to be paid tax wise to US.

Can you file FBAR late?  Anyone know what are the penalties for not having filed on time?

As for each individual FBAR reporting, they would only then need to do that if the amount is over 10k for their individual accounts.  Right?

It would be funds received by US citizens for property outside of US, but this gives me some idea of the process, thank you.  The parents died a while ago and the children took joint ownership, but I'm not sure if all of them were on the Deed, so it seems like they need to figure out how or what tax was paid if any to the foreign country to determine what would need to be paid tax wise to US.

Can you file FBAR late?  Anyone know what are the penalties for not having filed on time?

As for each individual FBAR reporting, they would only then need to do that if the amount is over 10k for their individual accounts.  Right?

I don’t know the rules on filing FBAR late. Sorry. You could try Googling while waiting for someone here to respond.

$10k aggregate at any point during the year is the trigger point for filing FBAR and it is each individual. Suppose Mr Smith has an individual foreign savings account of $9k plus a joint account with his wife that holds $5k. Mr Smith would need to file an FBAR since he has signatory authority over $14k. Mrs Smith does not have to file her own FBAR but will be listed as the other holder of their joint account on Mr Smith’s filing. This is obvious on the FBAR form which has a section covering accounts with multiple signatories.