Ask Terry Questions US citizen living abroad

US citizen living abroad

By Terry Savage on October 09, 2023 | College Savings / Student Loans

My daughter married a Canadian and lives there. She is expecting a baby who will have dual citizenship. How do I open a 529 plan for my grandchild since Fidelity cannot? Currently my daughter has a Roth IRA and other stocks which are at Fidelity but aren’t actively traded. Also, is there a financial planner that helps with international situations. I will need help once I redo my will. Thanks for your time!

Terry Says

Does your daughter still have U.S. Citizenship, and does your granddaughter have a U.S. Social Security number? She should, since the granddaughter is also defined as a U.S. citizen, although born in Canada.
So if the grandchild doesn’t already have a SS number, apply for one for her.

Then you can open a 529 account at Fidelity in your name as custodian for your grandchild, using YOUR SS number and that of the child. Should be absolutely no problem. And eventually she can use it here in the US for any college in any state. And 529 plans are usable currently in some foreign institutions, notably McGill in Canada!

As long as your daughter remains an American citizen, it should not impact your estate planning. She should maintain a bank account here, and should probably vote in U.S. elections. She can do that despite being a “landed immigrant”, which is the Canadian way of saying a “green card.” She would then have no problem being an administrator/executor of your estate or successor trustee of your Revocable Living Trust.
Consult an estate planning attorney to update your plan.

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