My father recently passed away.  He had some money in a bank account (in INDIA) with my name as a beneficiary.  I moved the money and invested it into the Bank's mutual funds.  I plan on leaving it there for at least a year (thus incurring NO taxes in India, as per their policy with those mutual funds).

1) Are these funds something I have to 'declare' on my 2016 taxes?

2) The fund manager says that as the funds are earning interest in India, I should not have to pay taxes in the U.S. when I eventually repatriate the funds back to the U.S.  - that does not sound correct to me.  It sounds like I would have to pay long term U.S. capital gains taxes (despite the funds selling point in India being no capital gains taxes if held for more than a year)

3) If I had moved this 'inheritance money' from the Indian Bank to my U.S. Bank, should I have to state that on my taxes - are there any implications on this money?

Thanks for any insight.