Part II Canadian brother buying a property in

>From my 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
-----Original Message-----
From: Nigel Morris-Cotterill [mailto:nigelmc at]
Sent: Sunday, January 15, 2006 6:40 PM
To: taxman at; centapede at
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
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."
centapede at wrote:
> wmlr at Please see bottom of message if you wish to
unsubscribe.  If you are new to the list, you were probably added because
you sent a question to taxman at, posted a question online at or possibly at
> ------------------------------------------
> 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
> 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.
> 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
> Why not buy it in trust for your brother and have the title registered
> 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, 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
> US / Canada / Mexico tax, Immigration and working Visa Specialists
> US / Canada Real Estate Specialists
> Home office at:
> 4466 Prospect Road
> North Vancouver,  BC, CANADA, V7N 3L7
> Cell (604) 657-8451 -
> (604) 980-0321 Fax (604) 980-0325
> Calls welcomed from 10 AM to 10 PM 7 days a week (please do not fax or
> outside of those hours as this is a home office)
> email to taxman at <mailto:taxman at>
> <>
> <>
> Disclaimer:  This question has been answered without detailed information
> consultation and is to be regarded only as general comment.   Nothing in
> this message is or should be construed as advice in any particular
> circumstances. No contract exists between the reader and the author and
> and all non-contractual duties are expressly denied. All readers should
> obtain formal advice from a competent and appropriately qualified legal
> practitioner or tax specialist for expert help, assistance, preparation,
> consultation  in connection with personal or business affairs such as at
> <> . If you forward this message, this
> disclaimer must be included."
> Be ALERT,  the world needs more "lerts"
> This from "ask an income tax and immigration expert" from
> <>  or <>  or
> <> . David Ingram deals on a
> daily basis with expatriate tax returns with:
> multi jurisdictional cross and trans border expatriate problems  for the
> United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait,
> Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France,
> Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia,
> Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran,
> India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba,
> Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK,
> GB, and any of the 43 states with state tax returns, etc. Rockwall,
> San Antonio Houston
> Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and
> Tips, Income Tax  Immigration Wizard Antarctica Rwanda Guru  Consultant
> Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate
> specialist expert preparer expatriate anti money laundering money
> FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border
> Grand Cayman Aruba
> listen to David Ingram Thursdays on Channel 114 Sirius Radio The Good Life
> with Jesse Dylan Daily at 12 noon New York time - david Ingram
> Income Tax expert - real estate IRA's 401(K)
> Thursday Jan 5, 2006 will be at 10 AM Vancouver time, 1 PM Manhattan time.
> You can listen live on Channel 114 of your Satellite Radio or listen to
> stream on <> .  You have to have the
> version of Real Player to listen live on the Internet. You can get the
> latest version free by going to
> <>
> After you are up to date, you can listen to the live program by clicking
> <>
> If you are in Canada and have a question to ask and want to email it to me
> in advance, we will try and use it on the air and if not, I will make a
> effort to answer it by email.
> But better would be a phone call if you live in the USA.
> Yep, a live free phone call is available from anywhere in The United
> (not Canada yet) at 1-866-LIME-114 or 1-866-546-3114
> Now, I do not have to tell you that if you want this service available in
> the future, support now would be nice.  Help me show those Manhattan types
> that there is a real demand for a Canadian to be answering US tax
> with particular emphasis on those Cross-Border or out of country
> Thousands of tax consultants can answer a child tax credit but not many
> deal with foreign tax credits and earned income exemptions and a foreign
> vacation home or foreign bank accounts or that foreign pension you still
> have after an American works in Australia, or Algeria or Spain or Canada.
> Alaska,  Alabama,  Arkansas,  Arizona,
> California,  Colorado, Connecticut,
> Delaware, District of Columbia,  Florida,
> Garland, Georgia,  Hawaii,  Idaho,  Illinois,
> Indiana,  Iowa,  Kansas,  Kentucky,
> Louisiana,  Maine,  Maryland,
> Massachusetts, Michigan, Minnesota,
> Mississippi,  Missouri,  Montana,  Nebraska,
> Nevada, New Hampshire,  New Jersey,
> New Mexico, New York, North Carolina,
> North Dakota,  Ohio,  Oklahoma,  Oregon.
> Pennsylvania,  Rhode Island,  Rockwall,
> South Carolina, South Dakota, Tennessee,
> Texas,  Utah, Vermont,  Virginia,
> West Virginia, Wisconsin, Wyoming,
> British Columbia, Alberta, Saskatchewan,
> Manitoba, Ontario, Quebec City,
> New Brunswick, Prince Edward Island,
> Nova Scotia, Newfoundland, Yukon and
> Northwest and Nunavit Territories,
> Mount Vernon, Eumenclaw, Coos Bay
> and Dallas Houston Rockwall Garland
> Texas  Taxman and Tax Guru  and wizzard
> wizard - consultant - expert - advisor -advisors consultants - gurus -
> Prague Moscow Berlin
> Lima Rio de Janeiro, Santaigo
> New York, Boston, Sacramento, Minneapolis, Salem, Wheeling, Philadelphia,
> Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers,
> Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay,
> Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec,
> Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego,
> Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa,
> Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham,
> Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence,
> Houston, Albany, Framingham, Cambridge, London, Paris, Prince George,
> Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon,
> Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers,
> Hamburg
> Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai, Beijing,
> Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer,
> Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie,
> Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey, Edinburgh,
> Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo,
> Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto,
> Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish,
> Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope,
> Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis,
> Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St
> James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape Spears,
> Truro, Charlottetown, Summerside, Niagara Falls, Albany STAR WARS
> Answers to this and other similar  questions can be obtained free on Air
> david ingram on the last Sunday of each month.
> On the last Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram will
> a guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show called
> Those outside of the Lower Mainland will be able to listen on the internet
> at
> <>
> Call (604) 280-0600 to have your question answered.  BC listeners can also
> call 1-866-778-0600.
> Callers to the show and questioners on this board can also attend the
> Thursday Night seminars on finance and making your Canadian Mortgage
> Interest deductible.
> I will be at the seminar following the last Sunday of the month.
> ------------------------------
> international non-resident cross border income tax help assistance expert
> preparation & immigration consultant david ingram, experts on rentals
> funds RRSP RESP IRA 401(K) & divorce preparer preparers consultants
> -----------------------------------------------------------------
> List-Unsubscribe:
mailto:centapede-request at

No virus found in this outgoing message.
Checked by AVG Anti-Virus.
Version: 7.1.371 / Virus Database: 267.14.17/227 - Release Date: 11/01/2006
No virus found in this incoming message.
Checked by AVG Free Edition.
Version: 7.1.371 / Virus Database: 267.14.18/230 - Release Date: 1/14/06


Trackback URL for this entry:

No trackback comments for this entry.