How to answer the question on Schedule B for RESP - about distribution from or whether a grantor of foreign trust

[complete]

On the Schedule B there is a question around whether I received a distribution from, or was the grantor of, or transferor to, a foreign trust.
I used to answer Yes to this questions in the past since I have RESPs for my children in Canada.
Do I now need to answer NO to this question given last year's exclusion rule of RESPs on 3520 and 3520As?
I also have RRSPs but I wouldn't think that this question wouldn't apply and it would still now be a NO.
Thanks in advance.
Regards

[nelsona]

RESPs are still considered trusts, like RRSPs. It is just that, like RRSPs, one does not have to file a 3520 for them.
So, you still check YES.

And it was always YES for RRSPs as well.

Answering YES has never forced one to file a 3520.

[ND]

'Answering YES has never forced one to file a 3520' it has only created nightmare for a number of filers who at best got IRS to rescind $10,000 penalty assessment per instance and ongoing administrative hassle. Why is that questions asked on 1040?To red-flag yourself as possible being required to file 3520. If you are not required to file 3520 (say RRSP/RESP), think twice before answering 'yes'.

[nelsona]

I have always correctly answered yes and never gotten a flag.

RRSP and RESP are indeed foreign trusts (the recent Rev Proc even says so for RESPs). They simply do not require 3520.

[ND]

People may extrapolate from RRSP/RESP to TFSA and find themselves needing lawyer resolution with IRS described here:https://polaristax.com/an-update-on-for ... -the-tfsa/

[nelsona]

Our poster hasn't mentioned anything about a TFSA.

[ND]

Thanks Nelsona for mentioning TFSA. Good chance to plug a warning about an extrapolation I see people make from RRSP/RESP to TFSA.

[fangle]

If one has an RRSP, does one always check yes to the checkbox question on Schedule B about receiving a distribution from, or was the grantor of, or transferor to, a foreign trust? I get that it's a foreign trust, but does one always check yes every year OR would it only be yes for those years when one makes a contribution to the RRSP? (I'm uncertain what a grantor means.) Thank you.

[nelsona]

Yes, always check that box.