>
>
> Dear Mr. Ingram,
>
> I came across your e-mail while researching my situation and hope that you
> may be able to offer some insight or direct me to an appropriate source.
> Any information or direction you can provide would be helpful!
>
> My mother purchased some timber land in Prince George, BC many years ago.
> She is a US citizen as I am. She is 91 and I have full power of attorney
> for financial and health matters as she is no longer able to manager her
> affairs. She has a living trust, created by a US attorney and the
> property in BC is not listed in the trust. The property is in her name
> only.
>
> My question is:
> * can Canadian property be put into the us living trust?
> * If so, would the property transfer to her heirs tax exempt if her
> total estate is under the 2006 US estate tax exempt amount?
> * If it cannot be put into the living trust, what tax implications are
> her heirs facing upon her death and how does the property get transferred
> to the heirs?
> * Is there any advantage to gifting the property to her heirs prior to
> her death?
>
> I appreciate any insight you can offer on my situation.
>
> Thank you,
> -------------------------------------------------------------
> david ingram replies:
>
> If your mother were to die tomorrow, the property is deemed to have been
> sold at the moment of death and there is capital gains to pay in Canada.
> If her estate is in the US estate taxable area, the capital gains tax paid
> to Canada can be used as a tax credit against US estate tax.
>
> If she were to gift it to the heirs now, there would be a deemed disposal
> at fair market value (FMV) in Canada and capital gains tax would be
> payable.
>
> Transferring it to the living trust would trigger a capital gains tax.
>
> For the most part, the living trust you speak of does not likely save any
> US estate tax and certainly is not saving any income tax in the interim as
> its income is taxed on your mother's 1040 as if it did not exist.
>
> Read the Federal Trade Commissioner's exhortation on living trusts:
>
> http://www.ftc.gov/bcp/conline/pubs/services/livtrust.htm
>
>
> A well written discourse on the abuses associated with living trusts can
> be found at:
>
> http://www.quatloos.com/traps/livtrust.htm
> .
> I love the Following treatise on Living Trusts by the New York State
> Attorney general's department. The NYAG makes the point that although a
> living trust "might' save estate tax, the same thing can be done with a
> will.
>
> http://www.quatloos.com/traps/livtrust.htm
>
> -------------------------------------------------------------------
> David Ingram's US / Canada Services
> US / Canada / Mexico tax, Immigration and working Visa Specialists
> US / Canada Real Estate Specialists
> My Home office is 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 Vancouver (LA) time -
> (please do not fax or phone outside of those hours as this is a home
> office)
>
> email to taxman at centa.com <mailto:taxman at centa.com>
> www.centa.com <http://www.centa.com/> www.david-ingram.com
> <http://www.david-ingram.com/>
>
> Disclaimer: This question has been answered without detailed information
> or 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
> any 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, or consultation in connection with personal or business
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> this message, this disclaimer must be included."
>
>
> Be ALERT, the world needs more "lerts"
>
>
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>
> David Ingram expert income tax help and preparation of US Canada Mexico
> non-resident and cross border returns with rental dividend wages
> self-employed and royalty foreign tax credits
> As of July 1, I am limiting my replies to three per day (I get up to 50
> questions) from non-clients. I am just too busy to answer many questions
> and am limiting myself to 3 a day except for my regular paying customers.
> And, if I have already answered one of yours free in the last six months,
> it is unlikely that the system will let you through with another free one
> now.
>
> Sorry - too many questions to answer (over 2,000 at the moment- all of
> which I have saved over the last two years with the intention of answering
> them). I am adding your name to our Q & A list and another question may
> answer yours. AND, I have answered over 6,000 questions at
> <http://www2.jurock.com/askexpert/expert.asp?aid=121&cid=63> or
> www.centa.com <http://www.centa.com> and you should be able to find your
> answer by going there or more specifically, to
> <http://www.centa.com/search.htm>
>
> However, if you can not find your answer,
> answers to this and other similar questions can be obtained free on Air
> on the last Sunday morning of each month (Sunday May 28 and June 25 are
> next).
>
> On the last Sunday at 9:00 AM on 600AM in Vancouver, david ingram will be
> a guest on Fred Snyder of Dundee Wealth Management's LIVE talk show
> called "ITS YOUR MONEY"
>
> Those outside of the Lower Mainland of British Columbia will be able to
> listen on the internet at
>
> www.600AM.com <http://www.600am.com/> (9:00 AM Los Angeles Time every
> Sunday morning)
>
>
> Call (604) 280-0600 to have your question answered. BC listeners can also
> call 1-866-778-0600 free of charge.
>
> Callers to the show and questioners on this board may also attend the
> Vancouver Thursday Night seminars on finance and making your Canadian
> Mortgage Interest deductible.
>
> There are 17 different topics covered and every Thursday night is
> different. They are presented by Fred Snyder at his office at 1764 West
> Seventh (the Spence Diamond building at 7th and Burrard) in Vancouver.
> Call (604) 731-8900 to register and be sure to bring your spouse,
> significant other or financial advisor.
>
> I will be at the Thursday evening following my last Sunday appearance. I
> will be at the Thursday, Feb 2nd 7 PM seminar to talk for a short time
> about mortgage interest as a deduction.
>
> And, of course, we are always here to prepare your US / Canadian and State
> returns by emailed pdf files, snail mail, fax or courier. We also do paid
> consultations by phone or in person for $400 Cdn per professional hour.
> -------------
>
>
> This from "ask an income tax and immigration expert" from www.centa.com
> <http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or
> www.featureweb.com <http://www.featureweb.com/>. 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,
> Dubai, 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, Dallas, San Antonio Houston
> Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and
> Immigration Tips, Income Tax Immigration Wizard Antarctica Rwanda Guru
> Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident
> Real Estate tax specialist expert preparer expatriate anti money
> laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting
> $10,000 cross border transactions Grand Cayman Aruba Zimbabwe South Africa
> Namibia help USA US
>
>
>
>
>
> -
>
>
>
> .
>
>
>
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