What would the legal and safe alternative be to transfer my brother $500,000USD in U.S?

Question

BTW I live in Croatia and my brother in the U.S has a checking account on Century Bank.

Answer 1

Would the bank suspect or think of anything illegal in my brother's checking account having $500,000 all the sudden? Or get him into trouble that he would need a lawyer?

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If it is a legal transfer then there is not problem.  If the money is from ill-gotten gains or terrorism connected then he may be arrested.   If the money is legit he has not worries!  

The origin of the money will be suspect because it is from overseas and the amount is so large.  More than likely the bank will notify authorities just to cover their butts.  No money will be given out for this check/transaction until funds can be verified as genuine.

If it is from a legal source then there should be no problems.  Your brother will have to pay taxes on the income this deposit generates.  

Even if your brother had to get a lawyer if the money is legitimate there would be no problems.  

See PDF link on this post.  (Failure to report certain funds may be a problem to your brother, all he has to do is follow the rules - if the money is from legitimate sources - no problem!)

http://tax.justanswer.com/tax/bst3-trans...

Answer 2

Is this a loan or a gift?  Is your brother a US citizen or resident alien?

If yes, he needs to file a form 3520 when he gets the gift.  If it's loan, you need a loan agreement and he needs to make payments to you.

Otherwise the IRS may think the money is unreported income.

Answer 3

sure they would, anything over 10,000 is reported to the government.

Answer 4

This won't go unnoticed! Can you prove that you got the funds legitamately? And what is your reason for giving it to your brother?

These sort of questions can & will be asked because the source of these funds will definitely be investigated. If all is legal & you have proof of the source then no problem, if you don't have a valid explanation/paperwork then expect a full investigation.

Answer 5

Any transaction over $10,000 is automatically reported to the Feds, and a transfer of half-a-million might trigger an investigation, especially if it's not between two corporations that regularly do high-volume business.  He should probably pay a financial lawyer to handle the transfer, but he'll only need a criminal lawyer if there isn't a legal explanation for the transfer.

Answer 6

Two issues here. What's the safe way to transfer the money? For that talk to the two banks involved. They'll help you out. It will be quite safe I'm sure.

Is it legal? Sure it is. You can transfer all the money you'd like. But the IRS will be alerted. What is this $500,000 for? Are you giving it to your brother? Is it a gift? If so you'll need to pay gift taxes on the transfer. Are you sending it to your brother to hold for you and give back to you? Then there should be no tax consequences. But the feds will want to make sure it gets back to you. If that's the case, why not just open up an account in the U.S. under your own name and transfer it there? Or is this payment for some service your brother provided to you. That would also be a taxable event.

Just what are you trying to do?  

Answer 7

I could use a loan of $900.00

I can also pay it back.

Answer 8

send $9,999 each day, we transferred $10,000 to buy a car, we had to have proof from where the money came from, and went to.

Answer 9

MANN send me 500K

Answer 10

500k would be a huge red flag to a bank, and they would pass it on to the IRS to investigate.  He would need to prove that he received the money legally, and is not involved in laundering money.  If the money is legal he may want to contact a bank and/or the IRS and/or a CPA to find out how he can transfer the money legally and if there are any taxes that he may have to pay.  No matter what he'll probably have to fill out a bunch of forms.