Question about cross-border tax treatment of a trust

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BeeTee
Posts: 3
Joined: Mon May 13, 2013 4:14 pm

Question about cross-border tax treatment of a trust

Post by BeeTee »

My mother is a US citizen, Canadian resident (in BC), who files tax returns in both countries. I will be her sole heir--I am a US citizen and US resident. Her estate planning attorney has suggested that she place her house in a trust to avoid probate. (The trust will cost considerably less than the eventual probate fees, not to mention saving the time associated with probate.)

The problem is that her attorney claims no expertise in US tax law. I am wondering whether a Canadian trust arrangement might trigger any US tax issues, either for my mother or for me. (By the way, her eventual estate will fall well below the estate-tax threshold in the US, and most of her assets are in Canada.) Any guidance will be very welcome.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Yes, there are foreign trust issues. You need to check this with a foreign trust expert in US.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
BeeTee
Posts: 3
Joined: Mon May 13, 2013 4:14 pm

Post by BeeTee »

Thanks for the reply. Any tips on identifying such an expert in my area (California)?
BeeTee
Posts: 3
Joined: Mon May 13, 2013 4:14 pm

Post by BeeTee »

Thanks for the reply. Any tips on identifying such an expert in my area (California)?
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