foreign immigration trust question

[webcite_99]

What if a US citizen establishes a foreign immigration trust and spends say 48 months in Canada as a resident then moves back to the US. 2 years later, the same US citizen moves back to Canada to become a resident again, can they re-establish a new foreign immigration trust and get another 60 months? or, is the 48 months from the first go-around deducted in some way?

Also, what if any impact would there be on a foreign immigration trust if the person becomes a Canadian (dual) citizen versus just being a resident?

Thanks.

[webcite_99]

No one has responded to this question, and I was hoping that someone may have some insights.

[Carson]

What if a US citizen establishes a foreign immigration trust and spends say 48 months in Canada as a resident then moves back to the US. 2 years later, the same US citizen moves back to Canada to become a resident again, can they re-establish a new foreign immigration trust and get another 60 months? or, is the 48 months from the first go-around deducted in some way?

Also, what if any impact would there be on a foreign immigration trust if the person becomes a Canadian (dual) citizen versus just being a resident?

Thanks.

The 60 months is cumulative as you have surmised. So, only one lick at the can.

Dual citizenship would not change your Canadian tax status, so it would have no impact in the scenario as presented. If you already are a Canadian citizen and lived in Canada previously, that time counts against the 60 months.

This is a complicated area, requiring dealing with a good tax lawyer.

[webcite_99]

Thank you Carson.

To maximize the trust and other tax issues, is there any benefit to be gained by timing a move? For example, is there any impact of say moving and declaring Canadian residence on December 31st versus say January 1st?

Thanks.

[nelsona]

No.

In fact, if any of your funds were to declare a distribution on Dec 31 (this was common in the past, less so now) you would be on the hook for cdn tax.

Canada gives you about $25 tax deduction for every day you are a resident. ($8000/yr prorated), so not worth declaring early.

Unlike US, where even one days taxation gets you the same exemption as the whole year.