Transferring money from Canada (Mother) to US (daughter)...

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rover1.5dx
Posts: 1
Joined: Thu Jun 09, 2016 3:11 pm
Location: Toronto

Transferring money from Canada (Mother) to US (daughter)...

Post by rover1.5dx »

Hi,

I just found this forum and hoping a few people can chime in. I did a search but couldn't find any answers.

The situation is my mother (who resides in Canada) and a daughter (who is Canadian but resides in the US with a US husband).

1. Money transfers: What's the best way (secure, lowest taxes and exchange rate fees) to transfer a large quantity of money from a Canadian citizen (Mother) residing in Canada to a Canadian citizen (daughter) residing in the US who is married to a US Citizen? The money (e.g $50K) will be used for a downpayment on the purchase of house in the US.

2. Gifting downpayments: Assuming the method of transfer of the $50K is via a 'gift' what is the preferred typed of mortgage? Conventional or FHA? The latter is supposed to be tax free for the donor (US-based) but what are the implications if the donor is Canadian and in Canada? Any tax implications for the receiver, donor or both?

3. Estate planning. What's the most tax efficient way for Canadian living in the US (daughter) to receive her inheritance from her mother who lives in Canada? Implications or strategies to transfer inheritance while you're still alive as well as upon death.

Thanks!
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1. First there is no taxes on such a transfer. The other way, from a US taxpayer to someone else would incur gift tax perhaps, but not in this case. The best is to use a foreign exchange firm (mtfx.ca works for me). There are more elaborate schemes involving brokerage accounts etc but this is overkill in my opion for what you want to do.

2. I would let your daughter worry about the mortgage, the source of the funds doesn't matter.

3. estate given from non-US citizens to US citizens are unlimited and are not subject to US estate tax (assuming any property is not in US). Then it simply becomes like #1.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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