Arrangement for single parent in USA to transfer funds to handicapped daughter in Canada upon death.

[Frankpc]

An 79-year old female acquaintance, Ann, living in Missouri, USA has a physically handicapped daughter living in a residence in Canada. The single daughter's two children live with her. The daughter currently receives financial aid from the Canadian government due to her disability. The daughter is considered to be a spendthrift.

Ann needs to enter into some sort of arrangement with a firm to manage her finances and to distribute monthly payments to her sole daughter at such time as Ann passes. The amount of the distributions should be limited such that the Canadian financial aid is not hindered as a result of the distributions from Ann's estate.

Perhaps distributions to the daughter's children would be considered.

I'm looking for advice to pass on to Ann. She has no one to serve as an executor for her estate. Her assets are cash accounts, stocks, mutual funds. Currently, most if not all of her accounts are set up to transfer to her daughter upon her death. She has no real property.

Are there [investment?] firms to provide such a service? What is the best way to proceed forward with this situation?

Thank you for the help,
Frank

 

[Zigner]

She will need someone who is familiar with the Canadian side of things...

 

[Frankpc]

Are there attorneys in the USA that would be familiar with Canadian issues such as this?

And aside from the complications brought forth by the Canadian consideration, are there firms that manage periodic distributions from an estate?

Thank you for the help.

 

[quincy]

Are there attorneys in the USA that would be familiar with Canadian issues such as this?

And aside from the complications brought forth by the Canadian consideration, are there firms that manage periodic distributions from an estate?

Thank you for the help.

Your friend can call a large law firm that has an international law division.

 

[Frankpc]

Thank you quincy.

 

[Just Blue]

Are there attorneys in the USA that would be familiar with Canadian issues such as this?

And aside from the complications brought forth by the Canadian consideration, are there firms that manage periodic distributions from an estate?

Thank you for the help.

How much money is involved?

 

[Zigner]

How much money is involved?

For all we know, any transfer of foreign funds, or any transfer of funds of any amount, may affect daughter's Canadian benefits.

 

[Frankpc]

I don't have an exact figure, but I would estimate around $400k. Perhaps $500k. I'll find out.

 

[Frankpc]

For all we know, any transfer of foreign funds, or any transfer of funds of any amount, may affect daughter's Canadian benefits.

Yes. I have helped her transfer funds to her daughter in the past through the use of PayPal. But those amounts were typically $500 to $1,000. They could have been under the radar I suppose. The only fees involved that I'm aware of were the PayPal fees.

 

[Zigner]

Yes. I have helped her transfer funds to her daughter in the past through the use of PayPal. But those amounts were typically $500 to $1,000. They could have been under the radar I suppose. The only fees involved that I'm aware of were the PayPal fees.

I suspect it was less "under the radar" and more "failed to report".

 

[Frankpc]

I suspect it was less "under the radar" and more "failed to report".

Very well could be. My thinking was based upon USA tax laws whereby you can transfer $16k (this year) with no tax consequence. Could be a different situation in Canada. I'm sure there was no consideration given to reporting the 'gift' as income. I would guess that over the years, the most transferred in a single year was $1500.

 

[quincy]

Here is a link to the Missouri Bar, where your friend can do a search for an attorney:

https://mobar.org

 

[zddoodah]

The daughter is considered to be a spendthrift.

Considered by whom? Are you attributing any sort of legal significance to this consideration?

I'm looking for advice to pass on to Ann. She has no one to serve as an executor for her estate. Her assets are cash accounts, stocks, mutual funds. Currently, most if not all of her accounts are set up to transfer to her daughter upon her death.

If all of the cash assets are set up to pass to the daughter after Ann's death, then I'm not understanding her desire to find "a firm to . . . distribute monthly payments to her . . . daughter" after her death. If all the money will pass automatically as a result of beneficiary designations where will the money come from to make these monthly payments?

Are there [investment?] firms to provide such a service? What is the best way to proceed forward with this situation?

Since at least part of the goal here seems to be to pull a fast one on the Canadian government, I'd suggest that Ann consult with an attorney in her daughter's province of record about whether the arrangement that she envisions is legally possible.

Are there attorneys in the USA that would be familiar with Canadian issues such as this?

I doubt there are any lawyers in Missouri who also happen to be knowledge about Canadian disability law. But what does it matter if the attorney is in the U.S.? If there's a desire for an attorney in the U.S., then Ann should look for a sophisticated trust/estate lawyer in Missouri who either has Canadian contacts or who works for a firm that also has a Canadian office.

 

[Frankpc]

Here is a link to the Missouri Bar, where your friend can do a search for an attorney:

https://mobar.org

Thank you. I will pass this on.

 

[Frankpc]

Considered by whom? Are you attributing any sort of legal significance to this consideration?

If all of the cash assets are set up to pass to the daughter after Ann's death, then I'm not understanding her desire to find "a firm to . . . distribute monthly payments to her . . . daughter" after her death. If all the money will pass automatically as a result of beneficiary designations where will the money come from to make these monthly payments?

Since at least part of the goal here seems to be to pull a fast one on the Canadian government, I'd suggest that Ann consult with an attorney in her daughter's province of record about whether the arrangement that she envisions is legally possible.

I doubt there are any lawyers in Missouri who also happen to be knowledge about Canadian disability law. But what does it matter if the attorney is in the U.S.? If there's a desire for an attorney in the U.S., then Ann should look for a sophisticated trust/estate lawyer in Missouri who either has Canadian contacts or who works for a firm that also has a Canadian office.

Her mother told me that if the entire sum of the estate was given to her daughter, "It would be spent in days."

The mother will have to change the way the accounts are set up today in order to cautiously dole money out. It does make one wonder why the accounts were ever set up as "joint" or TOD to begin with if the mother had the concern of her daughter being a spendthrift. Seems there was no consideration given to that.

I agree with the need to thoroughly understand the conditions of the Canadian aid being given the daughter. However, there is no plan to defraud the Canadian government. The problem is, the daughter does not have enough income to raise her family and that is why she requires help from her mother on occasion. The goal is to allow available funds to last as long as possible when the mother is no longer around to provide help.

I appreciate the advice to search out a lawyer in Missouri. I would think doing so would be more convenient than trying to find one in Canada. But that knowledge I don't have and to learn what to do is why I came here. I appreciate all the advice that is being provided.

All great questions. I sincerely appreciate your willingness to help with this complex situation.

Thank you!