[WSBAPT] Canadian be appointed as a PR or Trustee in US

Mon Mar 23 07:28:25 PDT 2020

Does Garrett share the same concerns for a Canadian PR? Does a Canadian PR pull the estate into a foreign tax limbo, too? 
Thanks! Very helpful insight. 
Sarah

Sent by dictation from my iPhone. Please excuse typos and missing punctuation!

> On Mar 22, 2020, at 6:07 PM, Carla J. Higginson <carla at higginsonbeyer.com> wrote:
> 
> 
> According to my law partner Garrett J. Beyer, who is a very experienced international and domestic tax attorney who handles many U.S./Canada tax matters, the issue with naming a Canadian citizen or Canadian resident as a fiduciary (especially if that person is the sole trustee), causes the trust to enter the Canadian tax system (meaning it will be subject to paying taxes in Canada and possible tax filings in both the U.S. and Canada).  Also, if the trustee is Canadian, the trust could be considered a “foreign” trust from the U.S. standpoint under Treas. Regs. Sec.  301.7701-4, and this will require additional reporting requirements and can have adverse income tax consequences to the beneficiaries.  It can also potentially cause issues with U.S. brokerage companies because of the “foreign” trust status.  He says naming a Canadian citizen or Canadian resident as a trustee or successor trustee has the potential to become a mess and his advice is, “Don’t go there.”   
>  
> ___________________________
>  
> Carla J. Higginson, Attorney
> Higginson Beyer, P.S.    
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> Friday Harbor Office:
> 175 Second Street North, Friday Harbor, Washington 98250 | Telephone: (360) 378-2185 | Facsimile: (360) 378-3935
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> carla at higginsonbeyer.com
> HigginsonBeyer.com
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> From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of John J. Sullivan, Esq.
> Sent: Saturday, March 21, 2020 2:20 PM
> To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
> Subject: Re: [WSBAPT] Canadian be appointed as a PR or Trustee in US
>  
> If the ST is domiciled in Canada, doesn’t that change the situs of the trust? If the trust is governed by WA law, perhaps delegate particular authority sufficient to establish a U.S./WA situs?
>  
> https://app.leg.wa.gov/RCW/default.aspx?cite=11.98.071
>  
> John J. Sullivan
>  
> From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of michael at westseattleattorney.com
> Sent: Friday, March 20, 2020 12:25 PM
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> Subject: Re: [WSBAPT] Canadian be appointed as a PR or Trustee in US
>  
> Jamia:
> So based upon Heather's response, did your Canadian PR get an EIN for the Estate and thereby avoid the issue? 
> Thanks 
> Mike 
>  
> <image001.png>
>  
> 
> -------- Original Message --------
> Subject: Re: [WSBAPT] Canadian be appointed as a PR or Trustee in US
> From: Jamia Burns <jamia at jamiaburnslaw.com>
> Date: Fri, March 20, 2020 11:24 am
> To: "WSBA Probate & Trust Listserv" <wsbapt at lists.wsbarppt.com>
> 
> I have had Personal Representative's who reside in BC, Canada and never had a problem. I have not had a Trustee in Canada. In my experience, Schwab is difficult to work with.
> 
> Jamia S. Burns
> Attorney at Law
> (360) 739-6379
> Office: 1200 Dupont St., Suite 1-D
> Bellingham, WA 98225 (By Appointment Only)
> Mail: P.O. Box 29453
> Bellingham, WA 98228
> jamia at jamiaburnslaw.com
> www.jamiaburnslaw.com
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> NOTICE: This e-mail may contain confidential or privileged material and is intended for use solely by the above-referenced recipient. Any review, copying, printing, disclosure, distribution, or other use by any other person or entity is strictly prohibited. If you are not the named recipient, or believe you have received this e-mail in error, please reply to the sender and delete the copy you received. Thank you.
>  
>  
> On Fri, Mar 20, 2020 at 11:17 AM <michael at westseattleattorney.com> wrote:
> Hi:
>  
> Can a Canadian be appointed as a PR or Trustee in US? 
>  
> I recall that I was informed by a Successor Trustee that after the Trustor had passed a broker (might have been Schwab) had refused to distribute money to him saying he had to be a US Citizen.   
>  
> If this is current practice, anyway around it?
>  
> Thanks 
> Mike 
>  
> <image001.png>
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