RDSP beneficiary - file 3520

Journadian · Post by **Journadian** » Sun Mar 26, 2017 9:33 am

My mom opened a RDSP for me years ago. I'm aware I would need to file a 3520. Upon filling form it ask if I have a beneficiary statement from 3520-A.
To my understanding only US residents owners of the trust fill the 3520-A form, so my mom (canadian res) would not do this.
Do I fill out the 3520-A? as an owner?

Anyone have experience with this? Please advise! Thanks!

LBB · Post by **LBB** » Sun Mar 26, 2017 2:01 pm

My children who are US citizens living in Canada had to file form 3520 for the the distributions from their RESP. I believe the same situation applies for a RDSP. As you probably now realize, there is no tax shelter benefit for a USC to hold these type of funds. Note that filling out form 3520 is not an easy task.

Journadian · Post by **Journadian** » Sun Mar 26, 2017 3:06 pm

LBB thanks for the reply!

I've been following this helpful thread on filing 3520/3520-A
viewtopic.php?t=4187&postdays=0&postord ... b3d2520ed2

On the 3520 form (part II - 22) "if the foreign trust filed 3520-A". Since my mom is Canadian than the form was not filed.
So for "No" it says "best to your ability to complete and attached a substitute 3520-A".

I guess I answered my question was hoping an alternative solution .. carrying the thought of that penalty is very worrisome.