Years ago my mother invested some money I made doing some acting as a kid in a bank account in New Zealand under her name. Both her and I live in Canada. We are both also Canadian/New Zealand Citizens. I do not believe I have ever held a New Zealand bank account or anything of the sort in my life.
Now she wants to give it back to me and I plan to use it to fund travel to NZ and then keep the leftovers (if any) in my normal accounts located in Canada (where I live, work and pay taxes).
I feel that the easiest thing logistically-speaking would be for her to transfer the money from the NZ account in her name into my Canadian account directly (via e-transfer maybe?). I'm not sure about the tax implications of this, OR how either of us would go about reporting it. Ideally I don't want to "ding" her for any taxes or fees and I'd prefer to avoid paying them as well.
Various things I have considered as options:
- Is a direct transfer the best idea?
- Will there be currency conversion fees?
- There was some interest earned on the money while it was in the account in NZ. Will either of us have to pay taxes on that? NZ taxes or Canadian taxes?
- Should I open a NZ bank account and transfer it there and then use THAT to pay for all NZ-related travel expenses and transfer the balance to my Canadian account at the end of the trip?
- Would it be "better" for HER to use that money to buy the plane tickets for us (hubby and I) and thus reduce the "amount of money" actually transferred?
I do not know what kind of account/investment it is currently in. She says it is in a "lottery" account but I have NO idea what that means.
What is the best method for me to get the money and minimize fees and taxes for both of us?
Edit: What if I just get her to put it into a PayPal account and then hand me the username and password?