>From my www.vountermoneylaundering.com friend in England, a further comment
on CONSTRUCTIVE TRUSTS. His comments are true of course. A Constructive
Trust is usually determined After the fact when there is a dispute. In
advance, a real trust document as in "IN TRUST FOR" is much more
acceptable.
-------------------
-----Original Message-----
From: Nigel Morris-Cotterill [mailto:nigelmc at countermoneylaundering.com]
Sent: Sunday, January 15, 2006 6:40 PM
To: taxman at centa.com; centapede at lists.centa.com
David
The thing about a "constructive trust" is that only a Court can construe
it. The parties cannot decide to form a "constructive trust" because
that would actually be a trust. A constructive trust arises by force of
circumstances, not by agreement of the parties.
A trust may be informal but it's safer to document it. Without such a
document, it is always open to anyone to challenge the existence of the
trust.
And that includes the Revenue authorities. Whilst they may sometimes
make an administrative determination of a constructive trust (but rarely
if it's in their interest to deny it) such would not bind third parties.
Only a court order could do that in the absence of a documented trust.
If someone, e.g. Revenue or a creditor, challenges the existence of a
trust, then an application to the Court would be needed and the claiming
party would have to demonstrate facts that give him an interest.
Documentation of the trust would not mean that it must be registered -
although as you say if everything is above board there is no reason why
the land title should reflect "A in trust for B."
N
centapede at lists.centa.com wrote:
> wmlr at vortexcentrum.com: Please see bottom of message if you wish to
unsubscribe. If you are new to the list, you were probably added because
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> ------------------------------------------
>
>
> My question is: Applicable to both US and Canada
>
> QUESTION: My brother is currently a US citizen and he wishes to purchase a
> house/apartment in Canada.
> We have decided that I would purchase the house/apartment and in 1 to 2
> years, I would transfer the ownership of the house back to him. He plans
to
> remain a US citizen and will not be moving to Canada. Would this be the
> best way to save on taxes? What taxes will he have to pay when I transfer
> the ownership of the property to him?
>
> Thank You
>
>
> --------------------------------------------------------------------------
-
> david ingram replies:
>
> The answer is pretty simple and similar to another answer I just gave.
The
> answer is a constructive trust. If he puts up the money and makes all the
> payments, etc, you may certainly hold it for him in a constructive trust.
> However, you could end up with the BC government wanting another property
> purchase tax and the Feds and BC wanting capital gains tax on the sale or
> transfer. You could spend a lot of time and money proving that it was
his.
>
> Why not buy it in trust for your brother and have the title registered
that
> way. That is what you would likely do if your =brother was a minor for
> instance.
>
> David Stoller at (604) 922-4712 or Bill Spohn at (604) 926-8681 are two
> lawyers in West Vancouver who could set the property up for you in that
> manner.
>
> Christine Louw (604) 990-3936 www.christinelouw.com-, John McKilligan at
> (604) 987-1245 or (604) 687-5050, or Ross McDonald at (604) 807-0403 are
> three realtors with extensive experience dealing with non resident owners,
>
> ------------------------------------
> David Ingram's US/Canada Services
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> Home office at:
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> Disclaimer: This question has been answered without detailed information
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>
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> ------------------------------
>
>
>
>
>
> international non-resident cross border income tax help assistance expert
> preparation & immigration consultant david ingram, experts on rentals
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