Moving gift/inheritance from Canada to US

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Mary
Posts: 8
Joined: Tue Jun 14, 2005 2:44 pm

Moving gift/inheritance from Canada to US

Post by Mary » Thu May 21, 2020 5:19 pm

I'm a Canadian/US dual citizen living in the US and my mother in Canada is elderly and not expected to live long. After discussions with her lawyer she is considering gifting the bulk of her estate (cash/investment) to minimize probate fees and taxes. If she decides to gift the estate now, what is the smartest way to move the money from Canada to the US in terms of minimizing fees, taxes and exchange rate consequences? These are the 3 options I can see
1. Have the funds paid as Canadian dollars directly into an American bank account
2. Have the funds converted to US dollars in Canada and paid directly to an American bank account
3. Set up a bank account in Canada (currently my only Canadian financial interest is in some RRSP's I left behind) and have the funds deposited there, at which point I could take a little time to move it across (or convert to US dollars and then move it across if it is better to do that), especially since the exchange rate is particularly low right now.
Any advice on the smartest way to move the money would be greatly appreciated! Thank you!

nelsona
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Location: Nowhere, man

Re: Moving gift/inheritance from Canada to US

Post by nelsona » Thu May 21, 2020 7:22 pm

First off, there is no tax to you on this gift, in either country, you simply have to declare it on a form 3520 in US.

I would have the executor issue you a check in USD and take it to US. There isn't really much to do with it in canada.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Mary
Posts: 8
Joined: Tue Jun 14, 2005 2:44 pm

Re: Moving gift/inheritance from Canada to US

Post by Mary » Wed May 27, 2020 10:33 am

Thank you so much nelsona - this is very helpful. I'm assuming a wire transfer in US funds would accomplish the same thing as a check? (since currently the borders are closed to travel). Or is it important that the funds move in the form of a check?

nelsona
Posts: 16419
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Moving gift/inheritance from Canada to US

Post by nelsona » Wed May 27, 2020 2:33 pm

That's fine. The point is to get the money in USD in Canada. Then transfer/wire/ carry, etc to a US bank.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Mary
Posts: 8
Joined: Tue Jun 14, 2005 2:44 pm

Re: Moving gift/inheritance from Canada to US

Post by Mary » Thu Jun 04, 2020 2:11 pm

Thank you!

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