Foreign financial accounts – Don’t overlook FBAR requirements
Abstract: Often misunderstood or overlooked, a report of foreign bank and financial accounts (FBAR) can be a costly trap for the unwary. It must be filed by any “U.S. person” with a financial interest in or signature authority over foreign financial accounts with an aggregate value that exceeds $10,000 at any time during the calendar year. U.S. persons include U.S. citizens, residents, estates, trusts and business entities. This article defines a foreign financial account and details how an FBAR affects estate planning.