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I am a U.S. citizen trustee and executor of my mom's trust. My brother is a Canadian citizen and lives in Canada and not a trustee. I will be dividing the trust funds or investments between the two of us per my mom's will and her wishes.

What do I need to be aware of and what is the best way to get my brother his share of her estate, with the least cost to him under Canadian law and regulations?

Can I just transfer the investments to him and he can do as he wishes? Is that a good idea? Does he need to pay taxes on any of it? If I set it up so he gets a set monthly income is that better or worse for him?

Thanks.

  • Hi @user27477 and welcome to Personal Finance & Money. Just to be clear, when you say "transfer the investments to him", are you planning to dissolve the trust (or, at least his portion)? Are you in general intending to give your brother full control over half of the trust (and/or half of the income from the trust), and you're asking how to do this in a tax-efficient method? – Joe Apr 27 '15 at 5:35
  • Is your brother also a US citizen? – littleadv Apr 27 '15 at 6:19
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    This question is missing far too many details for anyone to answer, but even if the details were provided, it would be a bunch of legal question rather than a matter of personal finance. "Can I just transfer the investments..." is governed by law, the disposition of the assets as per the will and/or trust documents, the leeway, if any, allowed to the executor/trustee etc. and the answer might well be "You must transfer ...." The OP needs to consult a lawyer before doing anything. Taxation of the beneficiary is the least of his worries. – Dilip Sarwate Apr 27 '15 at 12:47
  • On your end, be aware of U.S. FBAR requirements and IRS Form 3520. (Google those terms.) You both need a tax accountant just to make sure you don't mess up reporting requirements. – Rocky Apr 27 '15 at 18:04

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