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Foreign trusts: Form 3520-A and substitute filings
A US person treated as the owner of a foreign trust may have annual reporting obligations. When the foreign trust does not timely file Form 3520-A, the US owner may need to provide a substitute Form 3520-A with Form 3520. Trust classification and ownership must be reviewed first.
Who it may apply to
US grantors or owners of foreign trusts, US beneficiaries receiving distributions or loans, and families using non-US estate, succession or investment arrangements that could be trusts for US purposes.
Records to collect
Trust deed and amendments, settlor and beneficiary details, financial statements, asset list, distribution and loan records, foreign tax filings, trustee correspondence and prior US reporting.
Filing and decision points
Determine whether the arrangement is a foreign trust, who is treated as owner or beneficiary, whether Form 3520-A was filed, and whether a substitute information statement is necessary.
Common mistakes
Assuming a family account is not a trust, relying only on local labels, overlooking indirect distributions or loans, and failing to obtain records from the trustee early.
Official sources
- IRS Instructions for Form 3520-A
- IRS Instructions for Form 3520
- Related guide: foreign gifts and inheritances
Reviewed by Gurleen Kaur, CPA (Washington State). Reviewed September 7, 2026.