Does "unpooled" RESP Through Bank need 3520/3520-A

Ingtar17 · Post by **Ingtar17** » Sat Oct 18, 2008 10:00 pm

Hello,
I found an old Serbinski newsgroup post from 2004 where someone was asking if they had to file a 3520 and 3520-A for an RESP that was done through a bank and this was the response:

[i]QUESTION: Does that mean I file RESP return just like any other investments ? I don't have to file it as a foreign trust (Form 3520 and 3520-a) ? Thanks

ANSWER: Yes, you pick up the income as any other investment acocunt, as Nelson indicated.

Filing the 3520/3520-A depends on what kind of RESP account you have. If it's a bank or brokerage account, then it's not set up as a trust, so no 3520/3520A are required.

If the RESP is part of one of the older "pooled" plans, then it may very well be set up as a trust. You'll have to check with the administrators. Mind you, in that case, I don't see how you could get the info required to fill out the 3520/3520A anyway. [/i]

Is this true? My RESP is set up at a Canadian Bank (ie. not "pooled") - it's just me investing under the "RESP" banner. Can I avoid the 3520 and 3520A forms and just indicate the cap gains, interest and dividends? How would I deal with the government grant? If not, do I also have to fill out Form 709 since this is a "gift" to my son?

Thanks in advance for any help,
Geoff

nelsona · Post by **nelsona** » Sun Oct 19, 2008 7:51 am

The postion right now is that ALL resps meet the US trust rules, so should be reported on 3520.

Ingtar17 · Post by **Ingtar17** » Sun Oct 19, 2008 8:03 am

Ok.

Do I also have to fill in Form 709 since it's a "gift" to my son, or would this be done on withdrawl?

Thanks,
Geoff

nelsona · Post by **nelsona** » Sun Oct 19, 2008 7:12 pm

Its not a gift, its a trust

Ingtar17 · Post by **Ingtar17** » Sun Oct 19, 2008 7:47 pm

Thanks.

I have some 3520/3520A specific questions. I've noticed you don't like to get into this form, but these are somewhat general questions so hopefully you're happy to answer all or some (if not then z'alright).

My RESP is just me contributing at a major Canadian Bank (TD) (ie. no pooled fund or anthing). I'm US/CAN. Wife/son are CAN only.

3520
2a - Name of foreign trust - TD RESP or blank?
2b - Employer identification number ???? Blank I assume since this has nothing to do with my job.
7b - Relevant code section? (Canadian wife is other "owner") Instructions say you must comply with the reporting requirements that would apply to a direct transfer to that other person. What do I do here?
8 - Was the transfer a completed gift or bequest? Not sure if this is yes or no. It was a contribution by me to my son's RESP???
9a/b - Can this benefit any US beneficiary? This is a grey area as it can be rolled into my RRSP. I guess the answer is yes since it can benefit me?

3520A - Can I be the agent? Does TD have to sign the statement in the instructionss or just me? Who is the "trustee". Me or the Bank?

Thanks for reading.

Geoff

nelsona · Post by **nelsona** » Mon Oct 20, 2008 1:00 pm

"I've noticed you don't like to get into this form"

You're right. You want a mechanic, then hire a CPA.

nelsona · Post by **nelsona** » Mon Oct 20, 2008 1:01 pm

I'm also of the opinion that your RESP saleman should be handling this.

Ingtar17 · Post by **Ingtar17** » Mon Oct 20, 2008 2:44 pm

Got it.

Thanks for the help though - You've been great.

Geoff

Ingtar17 · Post by **Ingtar17** » Tue Jun 09, 2009 12:55 pm

Hello,
Since my last post I have figured out the 3520/3520-A forms for RESPs. I have a gain some years and a loss last year. Do I put the gains and losses into schedule D, Capital gains (where?), or should this go into Schedule E Part III (Income or Loss from Estates & Trusts)?

Thanks for your time.

Ingtar