This is the second of a series of four posts exploring some of the more difficult and “interesting” areas of (possible) FBAR obligations.The first post explains the FBAR filing obligations of trusts. This second post explains when individuals may have to file an FBAR because of their relationship to a trust. The third post explains how/why one may be required to file an FBAR based on control of an account rather than ownership of the account. The fourth post continues the discussion of when beneficial ownership without legal ownership triggers an FBAR obligation. The four posts are based on Podcasts with US tax lawyer Virginia La Torre Jeker.
Podcast 1: February 23, 2002 – FBAR Obligations Attaching To A Trust
Podcast 2: March 4, 2022 – FBAR Obligations Attaching To People Because Of Their Relationship To A Trust
Podcast 3: May 25, 2022 – Looking For Mr. FBAR – A New Sighting – ”exercised control over and had access to the account”
Podcast 4: September 29, 2022 – When ”Beneficial Ownership” Constitutes A Financial Interest And Triggers An FBAR Requirement
March 4, 2022 – Participants Include:
Virginia La Torre Jeker – @VLJeker
John Richardson – @Expatriationlaw
Part 1 – On February 23, 2002 I had the privilege of beginning a discussion with noted FBARologist Virginia La Torre Jeker. In that podcast we discussed the FBAR obligations that attach to a trust itself. For FBAR purposes a trust is a separate legal entity which may have its own independent FBAR obligations.
Part 2 – On March 4, 2022 we had a second discussion where we explored the circumstances when the individuals who are part of the trust (settlor, trustee and beneficiaries) have FBAR obligations because of their relationship to the trust. This podcast is based largely on Virginia’s post published on March 3, 2022 which discussed the FBAR obligations that attach to trust settlers, trustees and the beneficiaries of trusts.
A surprising realization is that there are circumstances when a beneficiary of a trust will not know and cannot know whether they have an FBAR obligation.