RESP / Trust on FBAR

jordanclark · Post by **jordanclark** » Mon Aug 08, 2011 11:38 pm

I have signing authority on my children's RESP and In-Trust bank account, but as I am not the beneficiary of the funds I am not sure if I have a "financial interest" according to the FBAR form? Do I have "legal title" or am I the "owner of record" of an RESP / In-Trust bank account or are my kids?

(To clarify the in-trust account is my kid's canadian child tax benefit and universal child care benefit)

Thanks!

nelsona · Post by **nelsona** » Tue Aug 09, 2011 9:49 am

The bank accounts re merly that. You report them on FBAR.

The RESP is a trust, and should be reported using 3520, and the income generated is yours. You may want to have the RESP put into another relatives name who is not a US taxpayer.

jordanclark · Post by **jordanclark** » Tue Aug 09, 2011 11:24 am

So a bank or investment account that is setup as an informal trust doesn't matter in the eyes of the IRS. I kind of figured I would have to disclose them on the fbar and 3520.

So then what about RRSPs do I need to put them on fbar or just the 8891? Also I have signing authority on my wife's (non us person) RRSPs do I need to include those?

One last thought, if I get a bad examiner who applies the maximum fbar penalties, how do they actually collect damages if I'm a non-resident? Will the CRA be their whipping boy, would they sue me in Canada or could they extradite me to the US?

nelsona · Post by **nelsona** » Tue Aug 09, 2011 11:44 am

RRSPs go in FBAR. And your kids acct goes on FBAR

Typically a couple file 3 FBARS:1 for each person's accts and 1 for joint accounts.

If your spouse is not a US person, you should file 3, too. accounts you hold alone, those you hold joint with spouse, and those you hold joint with kids.

RESP (and TFSA btw) goes on 1040, 3520, and FBAR.

jordanclark · Post by **jordanclark** » Tue Aug 09, 2011 3:01 pm

If you have an investment account with a firm and they invest your money in many different mutual funds & stocks, do you just list the 1 main firm on the forms (FBAR, 3520, 8891) or do they want the account numbers and account values for every sub-account as well?

Also for RRSPs whats the deal with Form 8833, I thought only Form 8891 was needed to defer taxes?

nelsona · Post by **nelsona** » Tue Aug 09, 2011 3:20 pm

If the firm creates different ACCOUNTS, then they should all be reported. However if they merely call each investment an account, then you report only the one account.

You will see this by your statement. If there is one account # that ties all together, that is the one.

8833 does not apply to RRSP election, and does not dsatisfy any of the 8891 objectives. Are you reading an incorrect site? This is the one stop source for RRSP treatment.

jordanclark · Post by **jordanclark** » Tue Aug 09, 2011 3:27 pm

Regarding the investment accounts it's weird because I have the main firm's account #, on their monthly statements it shows the mutual fund investments, but I also got an annual statement from each mutual fund company directly which also has its own account number.

What happens with transfers between these accounts, do I need to explain the aggregate maximum is greatly inflated? For example 1 year I switched investment firms, so I have $100k with firm A, then I transfer it to my bank account, then to firm B, so it looks like I've got $300k when I don't.

nelsona · Post by **nelsona** » Tue Aug 09, 2011 3:31 pm

Doesn't matter.

as to accounts, i would merely report the global account, if that is the one thru which YOU initiate trades, buys, etc. That is the one you have control over. Presumably, only the main firm controls direct activity in these other accounts, not you.