- Joined
- Dec 26, 2012
- Messages
- 10
- Reaction score
- 0
I'm posting to determine the most-tax efficient way to receive and the best place to place about $250K that should be available for transfer from Canada within the coming month.
I have posted below all the relevant information that I can think of.
(1) My mother died in Sept. 2019. She had a will that divided the estate equally among three siblings.
(2) My mother owned a fully paid off condo (worth about $1,000,000 CAD). In the spring of 2018 my mother deeded the condo jointly to (a) herself and (b) my younger sister. I was told in 2020 that the purpose of this was to enably my sister to handle various condo administrative matters that my elderly mother was no longer able to deal with.
(3) The condo is about to be sold, and my sister has repeatedly assured me repeatedly that she intends to distribute 1/3 of the proceeds to each of her two siblings.
(4) I have dual citizenship (Canada and U.S.), hold only a U.S. passport (not sure of relevance), and have lived in the U.S. since 1979 (I'm now 61 yrs old).
(5) My sister lived in the U.S. between 1979 and 1992. My mother lived in the U.S. between 1979 and 1996. I lived in Canada from 1959 to 1979, and in the U.S. since then. I currently live in Washington state, which has no state income tax.
My Questions:
(Q1) What is the most tax-efficient way to: receive this money, from the standpoint of: (a) the scheduling of money transfers; (b) the type of account to have the money transferred into; and (c) if I have a choice in the matter, how to characterize the received money with the IRS?
(Q2) What forms must I submit to the IRS to report this transfer?
(Q3) Will the transfer be treated as a gift from my sister, or as an indirect gift/bequest from my mother? (I'm not sure of the impact on my taxes either way).
(Q4) What tax, if any, will arise from this transfer?
Thanks in advance for any help the board can provide.
I have posted below all the relevant information that I can think of.
(1) My mother died in Sept. 2019. She had a will that divided the estate equally among three siblings.
(2) My mother owned a fully paid off condo (worth about $1,000,000 CAD). In the spring of 2018 my mother deeded the condo jointly to (a) herself and (b) my younger sister. I was told in 2020 that the purpose of this was to enably my sister to handle various condo administrative matters that my elderly mother was no longer able to deal with.
(3) The condo is about to be sold, and my sister has repeatedly assured me repeatedly that she intends to distribute 1/3 of the proceeds to each of her two siblings.
(4) I have dual citizenship (Canada and U.S.), hold only a U.S. passport (not sure of relevance), and have lived in the U.S. since 1979 (I'm now 61 yrs old).
(5) My sister lived in the U.S. between 1979 and 1992. My mother lived in the U.S. between 1979 and 1996. I lived in Canada from 1959 to 1979, and in the U.S. since then. I currently live in Washington state, which has no state income tax.
My Questions:
(Q1) What is the most tax-efficient way to: receive this money, from the standpoint of: (a) the scheduling of money transfers; (b) the type of account to have the money transferred into; and (c) if I have a choice in the matter, how to characterize the received money with the IRS?
(Q2) What forms must I submit to the IRS to report this transfer?
(Q3) Will the transfer be treated as a gift from my sister, or as an indirect gift/bequest from my mother? (I'm not sure of the impact on my taxes either way).
(Q4) What tax, if any, will arise from this transfer?
Thanks in advance for any help the board can provide.