FBAR reporting for children

Anna$C · Post by **Anna$C** » Tue May 22, 2012 4:15 pm

I asked this question earlier & didn't get an answer, so I'm trying again.

The children are dual Canadian/US citizens and are beneficiaries of RESPs worth >$10,000 each. They were born in the US but live in Canada.

The contributors to (owners of?) the RESP are Canadian citizens. The children have not received any distributions from the RESP.

Do the children have to complete a TD F 90-22.1 because they have a financial interest in an account worth >$10,000?

primo · Post by **primo** » Wed May 23, 2012 11:04 am

I would think that the children don't have a financial interest in the accounts as defined in the FBAR instructions. They don't have legal title to the accounts or signing authority, The accounts are in the Canadian parents names. If the kids go to post secondary school, the money in the account is transferred to the kids.. At that point the kids might have to report their account on an FBAR. If the kids don't go on in school, the parents that own the account have to pay all of the tax on the income earned and I think the grant has to be returned. So I would say "no", the kids don't have to report anything right now.