Transfer of money to sibling

L

lipchewer

Registered User
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Hi there,

I've spent a while navigating around AAM hoping to find a similar thread to my issue but no joy. Hopefully somebody may be of help to me.

I was contacted by my credit union who explained to me that my share account had too much money in it as new government rules regarding saving limits have been implemented. Ultimately they were asking me to reduce my account to below the new threshold. As there was a deadline approaching the credit union to enforce this new rule I had the weekend to decide what to do with the excess. My brother has an account with the same credit union and for simplicity and because i couldn't think of anything else at the time, i transferred the excess to him, which was approx 60k (this was below the account limits for him).

My intention was to simply transfer the money to satisfy the credit union's requirements and give myself a little time to chew on what to do with it. The plan was to take it back from the brother in the next number of weeks after i decided what to do with it.

However my fear now is that i have inadvertantly exposed myself to a tax bill because the 60k is above the revenue's threshold for money transfers between siblings. And also, that there will be another tax bill when he transfers it back to me.

Have i completely shot myself in the foot here or can somebody who may have followed a similar route be able to comment on their experience?

Many thanks!
 
Write up an agreement with your brother to the effect outlined above, money being transferred to meet CU limits and that money will be required to be repaid without interest in the coming months, once the money does come back to you there shouldn't be an issue.
 
You don't have to worry about a transfer where you remain the beneficial owner -- it is not a gift for tax purposes. Just make sure you have a paper trail if anyone asks, as the previous poster said.
 
cheers for the prompt replies guys!..........i've just exhaled an entire lung full of relief! :)

thanks again, much appreciated!
 
Generally not a good idea to have your assets under someone else name. I suggest you make a decision asap as to where you want to move the 60k to. You could obviously open a bank account as a short term solution.
 
I would suggest that you have your brother transfer the funds to your bank account or open one up for the transfer as soon as possible. In the eyes of the credit union you are no longer the beneficial owner of these funds nor have any access to these funds even if you had authority there would still be limits on what you could do with his account. Also you may have triggered a suspicious report under anti money laundering legislation as the amount exceeds the tax free limit for CAT to relatives so there would be a tax liability now due by your brother
 
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