UPDATED
I was born in the States and lived half of my growing-up years (with many good memories) on each of the East and West coasts. The present U.S. is not the country I grew up in however. I am retired from the work force and presently 71 years old, wanting to live a simple life without the stress the issue of U.S. citizenship has brought.
My then-husband and I moved to Canada in 1969 and both became Canadian citizens in March 1975, completely believing (as we were warned of it at the time by the U.S. Consulate) that we relinquished our U.S. citizenship by taking the Oath of Allegiance for our Canadian citizenship. We chose to live and work in Canada, pay our taxes in Canada and, especially, raise our children (born here) in Canada.
In 2008 I was made aware that the rules had changed (without anyone in the U.S. giving me any notification or a choice to opt in or opt out) — I was still a U.S. citizen and was not in compliance with filing U.S. tax returns — I am NOW compliant for years 2005 through 2012. The Canadian accountant that I had used for so many years and who knew that I was born in the States referred me to a Calgary cross-border accounting firm as he was not trained or licensed to deal with doing my back U.S. returns. It was confirmed by that respected cross-border accounting firm that I was required to back file and so at that time they helped me make a ‘quiet disclosure’ for three years of returns and (Foreign Bank Account Reports) FBARs. In November 2012, I renounced my US citizenship, having paid US tax lawyers, US tax accountants and US immigration / nationality lawyers over $42,000 in compliance fees, accounting and advice regarding the possibility of my son being able to renounce an automatic U.S. citizenship because of his birth in Canada to U.S. citizen parents.
Besides the U.S. legal and accounting professionals I hired for U.S. tax compliance and filing final Form 8854 after my 2012 renunciation, I paid $3,661 in actual US taxes — all related to the Canadian Registered Disability Savings Plan (RDSP) that I hold for my adult son who has a developmental disability. The Canadian tax payer helps pay for bonds and grants that are contributed to RDSPs by the Canadian government, so Canadian taxpayers have indeed had some of their Canadian taxpayer money as well go to the US IRS.
My biggest concern is for my adult son for whom I hold the RDSP (and others like him!). Since the U.S. considers the RDSP a foreign trust (as they do the Canadian Registered Education Savings Plan and Tax Free Savings Account), gains are subject to tax and this negates for him the same benefit that other Canadian citizens with a disability receive under these same plans. Neither of my children were ever registered by their parents as U.S. citizens with a U.S. Consulate. I never considered them anything but Canadian citizens. I also do not want the IRS to take one penny of my kids’ inheritance that I have worked and saved so hard for – in Canada.
Here is the advice I got from US Department of State, Legal: http://isaacbrocksociety.ca/2014/06/01/its-time/comment-page-72/#comment-3097016
From: Kavaler, Howard
Sent: Wednesday, May 07, 2014 9:55 AM
Subject: RE: Question re US Citizenship never registered with the US
Ms. Tapanila:
If your son was born in Canada to two U.S. citizens, at least one of whom had a residence in the United States prior to his birth, your son is a U.S. citizen pursuant to Section 301(c) of the Immigration and Nationality Act. Your understanding of U.S. citizenship law is absolutely correct. U.S. citizenship is a status that is personal to the U.S. citizen and may not be renounced by a parent or a legal guardian. If your son seeks to renounce his citizenship, it will be incumbent upon him to demonstrate that (a) his action in renouncing his U.S. citizenship is the product of his own free will and (b) that he fully understands the consequences attendant to the relinquishment of his U.S. citizenship.
…which agrees with the information from an immigration / nationality lawyer in Washington, DC, to confirm my son’s US status and give possibilities for his renunciation. The result was that my children were US citizens from the moment of their births. The following is information from that lawyer based on his conversations with the US Department of State: DOS persons have “sympathy” for such cases. However, the developmentally disabled person will have to have FULL understanding of what he’s doing; if any question of lack of comprehension and grasping meaning and importance of ramifications, they could NOT approve such a case. From DOS point of view, US citizenship is precious and they have therefore established fundamental requirements for “compelling reason”. Even though there is the risk that a person’s financial resources could run out before his/her life was over, they will never approve a renunciation for financial / economic reasons. DOS has NEVER had such a renunciation case approved due to “compelling circumstances”. I could sue but persons this immigration / nationality lawyer talked with at DOS are SURE no one would ever win such a case as the courts view the discretionary action that DOS has would take precedence.
My Canadian-born son, never registered with the US (didn’t have to — he was US-defined US citizen from his moment of birth to two then US citizen parents, which we had no idea of), never lived in the US, never had any benefit from the US and cannot renounce because of his lack of requisite ‘mental incapacity’ to understand the concept of citizenship. The U.S. Department of State states that a parent, a guardian or a trustee cannot renounce on such a person’s behalf, even with a court order. He and many others without ‘requisite mental capacity’, including others perhaps with a brain injury from accident or stroke, age-related dementia, etc. are effectively ENTRAPPED into U.S. citizenship and the consequences of that with U.S. citizenship-based taxation law (while the rest of the world, save Eritrea, tax based on residence). The only way not to be so entrapped would be for the U.S. to practice residence-based taxation. Some say, they never will (so, though never may not be, it will likely not be in my lifetime this will change).
Support / continue to support the Canadian litigation: http://www.adcs-adsc.ca/.
Intelligent forum conversations at IsaacBrockSociety.ca and MapleSandbox.ca with other U.S. citizens in Canada and around the world have helped me retain some degree of sanity in all of this. I am grateful for the perspectives of others in similar situations in helping me make necessary decisions that will lead me back to a normal life – one where I can again be a contributing member of Canadian society.
I will continue to support Alliance for the Defence of Canadian Sovereignty in a suit brought against the Canadian government for signing an intergovernmental agreement with the US to allow foreign (US) law to override Canadian laws, including the Charter of Rights and Freedoms, making US-defined *US Persons* in Canada second-class to any other – no matter what their or their parents’ or grandparents’ national origin.
Help fight this injustice for one million so-called *US citizens* in Canada plus their children and their business partners, etc. — and about 7 million US citizens around the world. http://www.adcs-adsc.ca/
See if you can e-mail Blaze and see if the Conservative will issue a statement, that will only apply the 1995 USA Canada tax treaty on USA citizen only for USA income. Demand the same from the other parties especially Liberals. This should save USA only citizen (permanent resident of Canada) a bunch of money.
Blaze has access to government official now.
If parties do not want to sign this, include it in Supreme Court challenge. It should be made crystal clear that the 1995 USA Canada tax treaty should be extremely limited.
In addition, if the court ever reverses the Revenue rule, the USA can theoretically come after all US persons in Canada due to 1995 USA Canada Tax treaty.
GeorgeIII,
This is not the appropriate thread for your comments. You should move your comments and your questions to a more appropriate one if you want people to answer. I’m sorry but I just don’t have any knowledge of this, but others might chime in if you ask elsewhere.
GeorgeIII,
I did email Blaze. She confirms that she has no special access to any government official now or ever. Blaze prefers to keep her energies focused. Perhaps someone else has some insight to the 1995 USA-Canada tax treaty applications, but they’ll never see it at ‘MyStory – calgary411’. I’m sorry but I just don’t have any insight into this.
Help! Help!
In last Wednesday’s Japan Times there was an article, more an infomercial, on US Persons needing to come into tax compliance. I would like to respond to this via a letter to the editor to correct some inaccuracies. I would like to start a new thread and ask the IBS community to check my accuracy and general editing.
I presume this is the article you speak of, JapanT: http://www.japantimes.co.jp/community/2015/01/28/how-tos/making-u-s-tax-filing-japan-little-bit-less-taxing/#.VMz7rywYFDQ.
Can you send your ‘Letter to the Editor’ that you want the IBS community to help you with. Thanks!
I hope this is not a double.
I understand that the USA may change it laws for children born outside USA to American parents,
But even if that does not occur, I suggest you may want to contact the Canadian Revenue Agency to receive a ruling that your son should not be considered an American for FATCA. The USA may still considers Lynne at Maple Sandbox an American but under Canadian FATCA IGA rule she is not an American.
If you explain your situation they may rule in your favour. They may charge a couple hundred bucks (standard fee) for the ruling but you can give your bank the ruling. You may even ask Steve Avary for help on wording. I assume you talk to him.
I would not wait too long as the Liberal are more friendly to King Obama
“Former Obama aides advising NDP, Liberals on campaign strategy”
http://www.theglobeandmail.com/news/politics/ndp-liberals-using-grassroots-mobilization-tactics-from-obama-campaigns/article22216447/
In addition, I assume any government of Canada will use the non withstanding clause if the USA (Obama) apply the sanction if human right challenge wins.
George 3rd,
I can’t imagine how that would or could be done by CRA, but if anyone has further suggestions on how, I am listening
— and I will have someone run it by Mr. Arvay and team. Remember that the Conservatives chanted in the Canadian Parliament “Just Renounce!” as if my son could: https://www.youtube.com/watch?v=ANqVaEpRi_4. Ger
Thank you for thinking of avenues for my son’s situation. Something / somewhere / sometime, I hope, will work.
Calgary, I’m not sure why George keeps coming up with unworkable ideas for you. ( I was tempted to use a much stronger word) Theplan that you already have in place will work just fine. I know it and you know it.
Calgary 411
You are not trying to change the way the IRS look at you only how the CRA looks at your son for FATCA.
Similart to how CRA considers Maple Sandbox status.
You should write a non conformational request (Canadian non arrogant polite style)
Point out the following
1) you can not renounce your son status because of irrational IRS rule
2) It has cost you a lot of money with IRS
3) he was born in Canada and is disabled from renouncing
4) he never received any social security benefit for being disabled (there is over 10 million American on that program)
5) you have been a Canadian Taxpayer (ex husband?) since 1970 They have tax record since 1978 and SIN record go back longer
6) you became a Canadian citizen (list date)
7) Show letter from lawyer, state department & IRS about your situation
8) you renounced USA citizenship and are tax compliant
9) You and your daughter (present and future guardian)will guaranty your son will not apply for any American benefits or privilege as US citizen
10) You understand that this letter only protects you in Canada from FATCA reporting (do not cross the border).
11) In summation ask that the same sensible government\ that considers Lynn at Maple sandbox is non American for FATCA should apply the sensible approach to your son (use that phrase or something better). You can catch more flies with honey than vinegar.
You may also want to talk to other lawyers and tax accountants how to approach CRA
Ask for a FATCA or foreign tax for Canadian expert when you call CRA.
A couple more comment it may be best to talk to a female middle age Canadian accent person.
Middle age female will probably be mothers.
Some foreign born Canadian may have an axe to grind against Americans
If you fell uncomfortable with the agent, make an excuse and hang up.
Then call the next day and hope you get a friendlier agent
George 3rd, again, thank you, BUT…
What you outline is something that I just could not do. Indeed, something like that (handing myself over to the CRA, a staff member who answers the phone at that) would be a try for a band-aid solution just for my family’s situation. I can envision the CRA handing me right over to the IRS to protect themselves — as might my local Canadian *foreign financial institution* to protect themselves.
Anything I think, do and say really is for ALL persons (and their families) who have some *mental incapacity* — and that includes many more than just a someone with a developmental disability, like my son. There are many different kinds of *mental incapacity* that would render someone incapable of renouncing their *US-defined US citizenship*. Such persons and their families need a common sense solution that will work for everyone. No one should have to do individual work-arounds, likely at great expense which would separate some families able to do that from others, because there is not some kind of just law that protects them.
(I also do not understand what you say about Maple Sandbox status. I have not read anything about any special status that the CRA has granted to anyone.)
First on Lynn the Canadian IGA was the first that allowed you declare your self a non American based on the fact you thought you relinquished when you became a Canadian citizen, The USA may still consider her an American Person for tax purposes even though under FATCA IGA she is a non American person. Under FATCA as well all you have to dois get a CLN even though you have not down the exit tax stuff. If you cross the border the USA may still consider you an American person for tax purposes, If he opens a no registered account they will report him.
Before I waste any more of my time, can you please explain away how you trying to keep your privacy when you appeared on CBC? Do you not think that Canadian Banker association and your bank have not heard about your situation. If he opens a no registered account they will report him. If the IGA is overturned and Canadian government does not apply non withstanding clause, a registered disability plan has to be reported.
The IRS already know about your son.
You have sent letter to the government.
I even think that the CRA has to keep things private.
Based on you answer I will determine if I am wasting my time.
Then I will explain why a non withstanding is most likely if USA apply sanctions on a successful Canadian court challenge.
I will also explain why I had those point listed.
I have dealt with the CRA (non audit situation) and they are extremely reasonable people.
Yes, George III, the IRS should know about my son. I have filed all required FBARs with US Treasury that identify the RDSP that I hold for my son. I presume that my *foreign financial institution* also knows about my son because I have chosen to speak out to my Canadian government representatives, the US DOS, and the Canadian and US media on how the implementation of FATCA in Canada ENTRAPS my *US-DEFINED US son* AND, MORE IMPORTANTLY, ALL JUST LIKE HIM WITH SOME MENTAL INCAPACITY into the obscene and absurd cost of compliance of all of the complex US tax and reporting forms on a yearly basis — for likely no tax that would be owed to the US. i.e. – for these people it would NOT be about US taxes owed (unless somehow the US being able to appropriate from their families’ estates upon the death of those who love them — like their parents, their guardians or their trustees who cannot act on their behalf to renounce this *US-defined US citizenship*, even with a court order).
I do so because of the absurdity of it all and I am here at Brock to help advocate for those families with someone deemed a *US Person* who also has a mental incapacity — those who don’t have a voice or even know about this situation yet. I don’t know what else to say — except the situation I and other families find ourselves in, to me, is immoral and must be changed if US citizenship-based taxation does change. I am doing what I am doing because I see no one else addressing the absurd situation and because probably most families who have a family member with some *mental incapacity* have little energy and few financial resources to deal with this on top of any of their other day-by-day “must-do” list.
I want to know how and why any country would put into place and continue to maintain a law knowing that would ENTRAP our most vulnerable into the consequences that US citizenship-based taxation does. I continue to HIGHLIGHT this obscene absurdity in the hope (however slim it may be) that it could help effect change — for ALL with some *mental incapacity*, NOT just my son. If there were residence-based taxation in the US, none of this would be a problem.
Will anyone listen — is anyone listening? I can only hope to strike a chord of common sense into some who have created and can change this obscene situation. In the meantime, I will continue to support the ADCS-ADSC lawsuit that does not protect, especially, those like my Canadian-born son — those with some kind of *mental incapacity*.
Also, George III, even US tax lawyer, Phil Hodgen, does not know what to advise about this *problem* (in answer to a question posed by “badger”)…
http://isaacbrocksociety.ca/2015/03/02/aca-video-from-may-2-2014-toronto/comment-page-2/#comment-5675167
Ok ( I hate writing on this small box and My word process copy and paste is a mess with this website.)
A) First on why I think any Canadian Government will use the non withstanding clause on a Supreme Court Challenge
1) Canada is heavily dependent on USA for trade we trade hard to move commodity to our nearest newest neighbours. Transportation cost on commodities is very expensive.
We have a trade surplus and we mainly buy stuff like I phone and financial product from them.
The USA can import commodity from around the world and the environmentalist would love to see all our tar sand production shut down. They prefer buying oil from Saudi Arabia over Canada. These companies and their employees do not want the 30% withholding. The industry representative was in lock step with the Canadian Banker association on this issue. Importer would also be hit by this issue.
2) Million of Canadian have investment in USA. The USA market has outperformed Canada for years plus it allow people diversification which is very important for investor. They do not want the 30% withholding.
The USA is Canada no 1 tourist destination they do not want to pay 30% witholding on USA dollars
3) USA is far and away Canada number 1 tourist destination . The Canadian Government gave explicit cover to 1 million snowbirds
“5. If I spend a certain number of days in the U.S. over a period of three years, does the U.S. consider me to be a U.S. resident?
IRS Publication 519 states that the U.S. domestic rules that determine if a non-U.S. citizen is a U.S. resident do not override tax treaty definitions of residency. If you are considered a resident of Canada and the U.S. under each country’s laws and the Canada–U.S. tax treaty considers you a resident of Canada, the U.S. has to treat you as a non-resident taxpayer and you should not identify yourself as a U.S. resident to your Canadian financial institution.”
http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/fq-eng.html#q2-5
In fact based on the reading of this and the IGA you do not have to be tax compliant to be consider a non US person for tax purpose according to FATCA.
“19. Does the agreement require Canadian financial institutions to report to the CRA on any individuals who relinquished their U.S. citizenship?
No. Canadian financial institutions do not have to report on any individuals who have relinquished their U.S. citizenship and are not residents of the U.S.
Financial institutions may ask individuals who have relinquished their U.S. citizenship for documentation to this effect. ”
http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/fq-eng.html#q2-5
You can republish without my name. This may help people with CLN and not tax compliant.
Of course if you have done a CLN but not done all the taxes you should not cross the border. The European IGA does not use this definition and you have to tax compliant to be considered a non US person.
I actually was hoping that KalC was still around we discussed this when I left in June. I saw some new story about IRS being to busy and I sent a thread to him and I never saw a reply. I am only hanging around for newby. You are a special case.
4) The USA financial market supply a lot of the capital for mortgages in Canada, If this dried up interest rates will rise in Canada, These USA investor can go to a lot of other countries.
5) There would a massive popular support to use the non withstanding clause by people hurt by the IGA being overturned.
How well did the Swiss attempt of the referendum turn out? Russia made certain it had an IGA signed even though it was facing lesser sanction for Ukraine. Carl Levin did not want the Russian IGA signed because of Ukraine. Putin does not like USA he keeps Snowden but he signs an IGA. Consider the havoc it will cause.
6) Some people think that if the IGA is overturned the banks will ignore searching for USA person. They will have to search and use much harsher method than what is in IGA. The IGA uses the weakest definition for American person. The IGA protect the registered disability plan whereas no IGA a bunch of registered plans have to be reported. The banks may questioned everybody with an American accent with no IGA. Under the IGA you can go back to CRA and show why you are not an US person. No IGA it goes straight to IRS. Without an IGA the banks would still report or face 30% witholding but it would be a real mess and even worse for USA persons.
7) Obama can not let Canadian Banks off the hook because he has then have at allow all other banks off the hook
The Liberal and NDP are friends of Obama they would have not negotiated a better deal. In 1995 the Liberal allowed USA to collect from non Canadian citizen (at time tax occurred). This did not occur with almost all other countries.
8) Obama could not care less what the Canadian Supreme court does. A bunch of government complained but they were forced to sign because of the USA reserve currency status. Look he does not care what the US congress (amnesty for illegal aliens, passing the IGA as foreign treaties need 66 votes). They are supposed to be equal if not the superior branch of government.
“The Constitution does not explicitly indicate the pre-eminence of any particular branch of government. However, James Madison wrote in Federalist 51, regarding the ability of each branch to defend itself from actions by the others, that “it is not possible to give to each department an equal power of self-defense. In republican government, the legislative authority necessarily predominates.”
http://en.wikipedia.org/wiki/Separation_of_powers_under_the_United_States_Constitution
next up why i Think the CRA may accommodate you.
On your case
First I heard that US government may ignore people who were born outside USA. The 2 initial plaintiff in lawsuit would be dropped, Steve Kish wrote about in a thread.
But for overall disability cases that cannot be renounced I think that the CRA & Finance minister may agreeable to offer non US citizen status if they can receive assurances that these disabled will not try to use USA citizens right in the future. That is why I mentioned you and your daughter offering to guaranty your son will not request any rights as a US citizen. I deal with scientific logic which is somewhat different than legal logic. But I think it can apply in this case.
1) he is not legally able to renounce
2) you as guaradian can not renounce for him
3) you may guaranty he will not use USA rights.
The Canadian government may accept this explanation like they accept the Lynn from Maple Sandbox explanation. This is a public relation problems for both countries and this small exclusion may be accepted as long as this guaranty he will not try to use USA right..
The IGA will not be turned down because of your son but I hope if it is approached in right way the CRA can see this conundrum.
Also if the USA changes it rule on foreign born of US parent, plus the fact that the IGA does not need you to be tax compliant to be a non US person it weakens the Supreme court challenge (plenty of people on Issac Brook still think you have to be tax compliant to avoid FATCA0.
If you were not tax complaint would you want to enter USA these days. You think that USA will ignore you if you claim US citizenship rights and have not filled in 30 years? Especially under Obama. Canadian FATCA IGA does not change this.
On my suggestion of approaching CRA
I think you know that most Canadians dislike most Americans because of their arrogance and confrontational style. A Canadian tax lawyer or accountant may be more help in how to talk to CRA than a constitutional lawyer. Also less confrontational.
American arrogance in truth is one of the reason I try to avoid IBS. There is a lot of arm waving (argument with facts) and scaremongering.
Thank you for your comments, GoergeIII.
As I have said here many times, I am NOT my son’s guardian, nor is my daughter. I am a trustee to take care of my son’s expenses from his provincial Assured Income for Severely Handicapped and I hold an RDSP for my son, for which he can be the beneficiary for payments when he is 60. I will somehow figure out the best way for planning my little bit of Canadian-earned and saved inheritance that should go to my children. I do NOT want to put this problem into my daughter’s hands when I am gone. I will use some kind of trust company, with my daughter part of some of those decisions for providing seamlessly for my son’s needs. She will be only his sister.
So, again, the problem solving should NOT be for me and my family. The problem solving needs to be for any such Canadian family as mine with a US taint — any such son or daughter or any other person with a *mental incapacity* who the US says cannot renounce their US-defined US citizenship.
Not that it has anything to do with my son’s situation or any other family’s son’s or daughter’s situation, I AM compliant from 2005 – 2012 for 1040’s, 1040NR, the myriad of forms required (including 3520’s and 3520A’s), and have sent in all FBARs for the same years. I COULD or should be able to easily cross the border as I have officially renounced and have my CLN. My name even appears in the “Name and Shame” documentation. Not that I want to cross the border other than to visit siblings if need be. I cannot, though, cross the border with my Canadian-born son with me — he may be able to cross with someone else, but I would not want him questioned if crossing the border with me by some US border official like the one who intimidated me during one of my crossings, which led to me applying for and obtaining my first and only US passport.
None of my situation and getting some specific work-around for my family’s case has any bearing on other family cases.
As I have said over and over, this is about something that will make sense and work for ALL such families.
If you have something in mind that makes sense for ALL, without cost to them, financially or emotionally, that might be helpful. In the meantime, I will continue as is. But, I really appreciate that you have tried to help me. It is the others that need some kind of help.
Other another issue housing price should take a dive in the next couple of month due to oil price decline and unemployment. The same thing occurred in 1980s due to NEP. I do not know if it will effect your mortgage situation.
Other people with disabled children may approach CRA for a opinion, I think there fee is 2-3 hundred dollar.
Thank goodness — at my age, my mortgage is long paid for (and, thankfully before all of my US tax compliance costs) or I would probably still be working.
That’s just it — SOME people with disabled children would not have even an extra $200 – $300 for fee to pay CRA for an opinion. Perhaps we should put the horse in front of the cart with the CRA and the Conservative government coming up with SOMETHING that will cover ALL such families with disabled children or any other family members who might have a *mental incapacity* — think age-related dementia and Alzheimer’s Disease, brain injury from an accident or a stroke — as well, someone with mental disability or addiction problems / all of whom may not have the *requisite mental capacity* required to renounce US citizenship and rid of any consequences of *US-defined US citizenship* when the US has CBT.
I will run the suggestion of a person like myself approaching the CRA when I meet with my Canadian accountant over preparation of this year’s Canadian tax return ONLY! Thanks once again.
Well tell the people with limited resources they do not have to be tax complaint to avoid FATCA, Even though they probably will be under the $50,000 limit.
The Bubblestin I wish I had a do over rule
“19. Does the agreement require Canadian financial institutions to report to the CRA on any individuals who relinquished their U.S. citizenship?
No. Canadian financial institutions do not have to report on any individuals who have relinquished their U.S. citizenship and are not residents of the U.S.
Financial institutions may ask individuals who have relinquished their U.S. citizenship for documentation to this effect. ”
“22. If I am assessed tax or a related penalty by the U.S., will the CRA assist the U.S. to collect it?
While the Canada–U.S. tax treaty says that Canada may assist the U.S. to collect certain taxes, it also says that the CRA will not assist the IRS to collect your U.S. tax liability if you were a Canadian citizen when the liability arose. This is true whether or not you were also a U.S. citizen at the time.”
http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/fq-eng.html#q2-5
I also think that the Conservative said at FATCA hearing they will only collect for USA source income no penalty
Other than having a conversation with Dash I do not want to spend too much time here. I think Dash lives in the states. He was Canadian born and is now a dual citizen. I will give him my reason why I think any government of Canada will use non withstanding clause.
As best I can see rental properties will avoid FATCA rules unlike other assets (bond & stocks). You can combine it with a bank account at credit union that does not report to FATCA. Now this would work for person able to sign for his own bank account. You can check with a lawyer how that works for a trust account for your son.
I should also point that Calgary real estate is over valued and the future of Calgary primary industry is in terrible shape with Keystone and Northern Gateway dead.
This was a recommendation from George trois or maybe the Father of George IV.
Thanks for the further suggestion, George III. Yes, the Calgary real estate is certainly over-valued says my property tax bill for my ever-in-need-of-repairs 1908 house. But, I will hold on to it in one of the inner-city neighbourhoods that, hopefully, may hold home value more than in other areas of Calgary. It is a walkable neighbourhood that I’ve lived in since 1991, where I will eventually not need a vehicle, unless just my bike with a grocery basket.
It’s a discretionary trust (used for persons with disabilities) that I have set up to disperse $$$ for monthly expenses that will come from my son’s portion of inheritance when I die — seamless from his present provincial funding that will no longer be available. Much research on how that can be accomplished through other than the trust company now in my will.
Interesting times for Calgary and Alberta. Hopefully energy companies can be innovative with other energy sources than the easy O&G. It may be an opportunity for them and many good people employed here.
I was not thinking of your house. As you get older, you may want something smaller and used proceed to buy a rental property as well. I was thinking that you may eventually get him a apartment condo for rental purposes. I assume he can not live in a place by himself so he would have to get an assisted living place and a rental place would give him a decent income to pay for that. Assuming Calgary has an economy.
Regarding Oil sector
Logistic has to logical and you really do not want to ship oil east to send it to China.
Gasoline is different in every market and you pipeline crude oil to the market. They refine it to what they need.
You can do some mild upgrading of syncrude to a diesel blend but Obama does not want any product from Canadian Oil sands. He will kill any pipeline, but he can not do anything about these stupid long trains which are dangerous create more greenhouse gases. He is king. He also would love to kill Alberta oil by applying 30% sanctions which will kill our exports. He rather buy oil from Saudi, Iran and a bunch of asshole countries.