Transferring money bank-to-bank

[Going through 5,671]

My mother wants to give me my inheritance while still living.

 

Instead of carrying large amounts of cash when re-entering the US, I was planning on opening up a joint TD bank account in Canada with her, depositing the funds there, and then when back in the US open a TD account to transfer/withdraw the funds at a TD bank here (to then deposit into my existing Chase account).  Is this the correct way to do it?  Also, are large deposits held for a certain amount of time before being able to transfer from bank-to-bank?

 

My mother would not be added as an account holder on the US bank account---would I be able to make the transfer still?

 

Or is it just easier to put the funds into cheque, and declare it at the border?  I'm not sure what type of paper-trail I would be able to show as to the legitimacy of the funds, which is the only reason why I'm trying to avoid this route.

[aaron2020 11,651]

Have mom write you a check and you deposit it in your account.  KISS.  Keep it simple.

 

Why go through a joint account and transfer to a different account?  Why make something as simple as depositing a check into something suspicious?  

[Going through 5,671]

8 minutes ago, aaron2020 said:

Have mom write you a check and you deposit it in your account.  KISS.  Keep it simple.

 

Why go through a joint account and transfer to a different account?  Why make something as simple as depositing a check into something suspicious?  

Only because I no longer have an active bank account in Canada.  

I have no problem declaring a cheque at the border---I just don't know what to expect in terms of how to prove the cheque came from legitimate sources (ie. a paper trail if asked for one at POE).

[USS_Voyager 1,972]

I would just have her write you a check. The check does come from a legitimate source: your mom. 

 

My only experience close to something like this is year and a half ago, my wife had some investment liquidated from our home country and wanted to transfer it to the US. So she just did a direct international wire transfer to our checking account. Just so happened that later that year, we were co-signing a mortgage for her sister. The bank brought up the large deposit from oversea. All I had to do was just send them a signed letter verifying that the money was from an investment oversea. No one from immigration ever said anything. Not exactly the same experience, but just the closest one I have.  

Edited February 15, 2019 by USS_Voyager

[Cryssiekins 976]

You can deposit foreign cheques into most US bank accounts, although it takes some more time for clearing.

 

After we got married, some family members who didn’t attend (it was a super small ceremony) wanted to send us gifts and just wound up mailing us checks.  Even small checks for $100 CAD were held for so long.  

 

The other alternative would be for your mom’s bank (in Canada) to send an international wire to your US account.  Funds are available quicker that way.  Probably fees on both ends for that, and I have zero idea about the tax implications.

[USS_Voyager 1,972]

Inheritance is not taxable income. 

[Cryssiekins 976]

5 minutes ago, USS_Voyager said:

Inheritance is not taxable income. 

Good to know   Thanks!  I never know anything about tax stuff - I just assume there is a tax on everything, so that’s left up to my husband, and before I was married, my accountant brother did all that stuff for me.

[USS_Voyager 1,972]

20 minutes ago, Cryssiekins said:

Good to know   Thanks!  I never know anything about tax stuff - I just assume there is a tax on everything, so that’s left up to my husband, and before I was married, my accountant brother did all that stuff for me.

Yeah, I don't know much about taxes either, but very very generally speaking, you're taxed on your income (wages, salary, tips, .... ) at the bracketed rates (for example, the first $12,000 your earn is tax free, the next $12,000 is taxed at 15%, ... and so on) and capital gains (investment, for example, you bought a house for $100,000 and sold it for $120,000, so $20,000 is your gain, which is taxable at a flat rate of 15%)  --> That's why rich people get taxed less, most of their taxes are capital gains from their investments, not wages like we do. 

[Wuozopo 4,293]

2 hours ago, Going through said:

My mother wants to give me my inheritance while still living.

 

Instead of carrying large amounts of cash when re-entering the US, I was planning on opening up a joint TD bank account in Canada with her, depositing the funds there, and then when back in the US open a TD account to transfer/withdraw the funds at a TD bank here (to then deposit into my existing Chase account).  Is this the correct way to do it?  Also, are large deposits held for a certain amount of time before being able to transfer from bank-to-bank?

 

My mother would not be added as an account holder on the US bank account---would I be able to make the transfer still?

 

Or is it just easier to put the funds into cheque, and declare it at the border?  I'm not sure what type of paper-trail I would be able to show as to the legitimacy of the funds, which is the only reason why I'm trying to avoid this route.

 

I received a true inheritance check from the U.K. (distributed from a law firm) and depositing into my US account was going to be quite expensive because of the currency exchange and other fees. Maybe Canadian to US is more streamlined in NY due to the closeness of the borders. I ended up mailing the check back to the UK because I still had an account there. Then I used Transferwise to send the money to my my US account. You might want to look into having your mother set up a Transferwise account to send directly to you. I am not sure how it works between two parties, so that's for you to research.

 

Also yours is not an inheritance because your mother did not die and bequeath it in a will. It is a gift from her.  You need to look at gift taxes, not that you will be taxed but to make sure you have no reporting requirements. https://www.irs.gov/businesses/gifts-from-foreign-person 

 

[carmel34 3,626]

My Mom did this last year, and she also lives in Canada, I live in the US.  She went to her Canadian bank, had a "cashier's cheque" prepared for the total (big) amount, in US dollars, drawn on a US bank (most of the big Canadian banks can do this).  Then she mailed it to me, and I deposited it into my US bank account.  It did take a week or so to clear, but it was easy, no problems.  And because she is still living, it is considered a gift for US tax purposes, not subject to estate (inheritance) taxes.  You only have to file form 3520 with tax return to report the foreign gift to the IRS if the amount exceeds $100,000 (US).  Good luck! 

[Going through 5,671]

1 hour ago, carmel34 said:

My Mom did this last year, and she also lives in Canada, I live in the US.  She went to her Canadian bank, had a "cashier's cheque" prepared for the total (big) amount, in US dollars, drawn on a US bank (most of the big Canadian banks can do this).  Then she mailed it to me, and I deposited it into my US bank account.  It did take a week or so to clear, but it was easy, no problems.  And because she is still living, it is considered a gift for US tax purposes, not subject to estate (inheritance) taxes.  You only have to file form 3520 with tax return to report the foreign gift to the IRS if the amount exceeds $100,000 (US).  Good luck! 

Thanks so much for the info!  I tried to convince her to do it in check form and mail it when she brought this all up earlier in the year, but she's paranoid about it getting lost (even with registered mail/tracking/Fedex/ what-have-you)...I will  be in Canada anyhow, so we'll likely end up doing a money transfer.  

[NikLR 13,227]

I woulsnt suggest a cheque from Canada.  It wont be in USD and will take forever to clear.  A money order or such in USD would be easier.  Or do the transfer. You can choose a date with a good exhange rate.  Anything over 10k has to be declared regardless. 

[Going through 5,671]

6 hours ago, NikLR said:

I woulsnt suggest a cheque from Canada.  It wont be in USD and will take forever to clear.  A money order or such in USD would be easier.  Or do the transfer. You can choose a date with a good exhange rate.  Anything over 10k has to be declared regardless. 

So if I do the transfer, do you mean I let CBP know upon re-entry that "a money transfer in X amount has taken place/pending", and declare it on the customs form?  If I leave Canada after the transfer has already cleared through my US bank, do I still declare it?

 

I was under the assumption that declaring the funds at the border was only if I was carrying the amount on me (cash/cheque/money order)..since the bank would already be reporting it through a CTR and forwarding that report to the Financial Crimes Enforcement Network (FinCen) due to the amount.

 

Just want to make sure I'm doing this properly when I re-enter...thanks NikLR for further clarification, if you can.

[Wuozopo 4,293]

2 hours ago, Going through said:

 

I was under the assumption that declaring the funds at the border was only if I was carrying the amount on me (cash/cheque/money order)..since the bank would already be reporting it through a CTR and forwarding that report to the Financial Crimes Enforcement Network (FinCen) due to the amount.

 

This ^^ is correct.

You do nothing unless you are entering the country with it in your pocket. All transfers done by financial institutions are reported for you if they are over the threshold. 

[NikLR 13,227]

2 hours ago, Going through said:

So if I do the transfer, do you mean I let CBP know upon re-entry that "a money transfer in X amount has taken place/pending", and declare it on the customs form?  If I leave Canada after the transfer has already cleared through my US bank, do I still declare it?

 

I was under the assumption that declaring the funds at the border was only if I was carrying the amount on me (cash/cheque/money order)..since the bank would already be reporting it through a CTR and forwarding that report to the Financial Crimes Enforcement Network (FinCen) due to the amount.

 

Just want to make sure I'm doing this properly when I re-enter...thanks NikLR for further clarification, if you can.

No no only declare it if you have it in hand.  If you do a bank transfer or wired the money the financial institution would let cbp know.