TFSA deposit account still considered a foreign trust?

aoleung · Post by **aoleung** » Mon Feb 15, 2016 11:39 pm

I haven't been able to Google a satisfactory answer to this specific question so hopefully someone out there may have the answer.

My TFSA is specifically set up as a deposit account, not under any trust arrangements, and does not have any investment in mutual funds - interest is accrued similar to a savings acct. Does the IRS still consider this a foreign trust?

Thanks!

nelsona · Post by **nelsona** » Tue Feb 16, 2016 10:58 am

The rule of thumb is that unless the TFSA manager can categorically state that it is not a trust, it is, and will need 3520, as well as reporting the internal income.
They don't called them TFSA "trustees" for nothing.

aoleung · Post by **aoleung** » Tue Feb 16, 2016 11:34 am

got it, thanks - now to wade into the 3520/3520-A posts...

alitxtx · Post by **alitxtx** » Mon Feb 22, 2016 11:22 pm

I am still a bit confused about this. Who is considered a "TFSA manager"?

I am a US resident since 2015. I made a visit back to Canada in Aug. 2015 to close my TFSA. The type of investment is a non-redeemable GIC, and the issuer is Bank of Nova Scotia. No where on the terms does it mention "trust" or "trustee". At the time I closed my TFSA, my financial adviser had stated that the GIC is not considered a trust, but I still closed it anyways. Now should I confirm with the bank again, or it's probably better to deal wit the extra paperworks in any case?

Thank you very much!