Do you offer your financial advisory services privately to U.S. residents/citizens awaiting immigration approval to Canada? My husband and I have hired this law firm (Campbell, Cohen) to help us gain approval from Canadian Immigration (Buffalo) and we hope to hear that we have been accepted on or before Nov 2000.

Please advise at your earliest convenience as we are most interested in gaining a better understanding of the tax implications of transferring our assets to Canada, etc.

Sincerely,

Arleen & Joseph Melvin

P.S. We've already purchased a home in Canada and hope to take title on or around Nov 15, 2000; then permanently move and establish jobs as soon as permissable by Canadian law.

You have asked for some factors to consider when setting up an immigration trust prior to becoming a resident of Canada:

- Cost/Benefit – One must consider whether the cost of setting up and maintaining exceeds the tax savings from the trust. This is essentially a question of how much is to be earned annually by the trust.

- Taxation in former jurisdiction – While an immigration trust is not taxable in Canada for the first 60 months of Canadian residence, it is important to consult with a tax advisor where you currently reside or where you have resided in the past as those jurisdictions may maintain the right to tax those trusts. Taxation of the trust in other jurisdictions may reduce or eliminate the benefit of establishing the trust.

- Jurisdiction of the trust – Assuming you can benefit from an immigration trust, it is ideal to establish it in a low-tax jurisdiction. This will include the appointment of trustees, the majority of whom must reside in that jurisdiction. The decision as to where to establish an immigration trust requires a thorough review of the tax and legal framework of the jurisdictions under consideration.

As to your other questions:

We offer taxation and financial advisory services to persons considering Canadian residence. You can contact Phil Nadler at (514) 934-8672.

Disclaimer:
The nature of this facility is to provide a general response to a general question. Under no circumstances should anyone act on this information without obtaining analysis and counsel from a qualified advisor with respect to the specific situation.
________
Phillip Nadler, CA
Richter Usher & Vineberg
2 Place Alexis Nihon, Montreal, Quebec, H3Z 3C2
Phone (514) 934-8672 Fax (514) 934-3408