Cross-Border Estate Planning Resource Hub

Those who have worked in both Canada and the U.S. may be eligible for Social Security (SS), Canada Pension Plan (CPP) and Canadian Old Age Security (OAS), but it can be complicated. While SS depends on years worked, OAS is based on years of Canadian residency, and CPP is based on contributions. You may be able to take early reduced benefits or delay them to receive increased payouts. There may be clawbacks based on income levels…

A Canadian inheriting a U.S. IRA faces different tax implications than an inheritance in Canada would generate, namely, income tax and income withholding in the U.S. and income tax in Canada. It may be possible, though, for such a beneficiary to defer taxes in both countries by establishing an Inherited IRA account.

For individuals moving from Canada to the U. S. and planning to sell their Canadian home, there are different Canadian and U.S. tax implications. To avoid or minimize tax liability, specific criteria need to be met around the questions of whether tax residency is in Canada or U.S. when the sale occurs and if the home qualifies as a principal residence. If sold while still a Canadian tax resident, a status that can be maintained for a period beyond the moving date, exemptions apply. Additional compliance requirements need to be met when the property is sold by a U.S. tax resident.

The Lifetime Capital Gains Exemption (LCGE) is available to all Canadian residents and Americans living in Canada as a tax deduction on the sale of a Qualified Small Business Corporation (QSBC). It is indexed to inflation, and it can be used in part. Three tests must be met to claim an LCGE, and there are complicated regulations governing each of these.

Cardinal Point’s Terry Ritchie continues his talk with Rob Carrick about U.S. estate taxes; this segment focuses on what they mean to Canadians who own U.S. stocks and ETFs. U.S. shares owned by Canadians are considered U.S. cited, and there could be U.S. estate tax filing requirements if they are valued at more than $60K […]

Cardinal Point’s Terry F. Ritchie talks to Rob Carrick about the latest changes in U.S. estate taxes and what they mean for Canadian snowbirds who own property in the U.S. For many years, snowbirds had to worry about U.S. estate taxes, but it’s not an issue for most anymore, as the threshold is much higher […]

In this segment for Investment Executive, Terry Ritchie talks about U.S. estate planning issues for Canadians with property in the U.S. Recent estate property tax changes in the U.S. have relieved the burden for many Canadians of what happens upon their death when they own U.S. property. If a Canadian owns property with a worldwide […]

These days almost everyone holds valuable digital assets and they continue to accumulate them. Examples include online financial accounts, photos and videos on smartphones, and digital currencies like Bitcoin. These may have financial value, legal value, or significant sentimental value. But most people do not fully consider the importance of including these digital assets when doing their estate planning. That leaves them exposed to the risk that if they are impaired or die, the assets may be difficult or even impossible to access. This article explains how to avoid that risk, to ensure a seamless transfer of digital assets for the benefit of both you and your beneficiaries.

The successful transfer of assets to intended beneficiaries according to one’s desires is a vital goal in U.S. estate planning. However, many people – including some less informed and experienced financial and tax planners – often fail to understand the crucial role that is played by 1) the specific way that assets are owned and 2) exactly how they are transferred. Strategizing and planning accordingly is extremely important in order to avoid unwanted tax implications and other obstacles to the transfer of wealth. This article offers valuable insights in that regard, to help ensure that estate plans are structured for maximum benefits to secure one’s financial legacy.

When gifting assets in a non-arm’s length transaction, there are many financial and tax complexities to consider based on U.S. and Canadian laws. Where you and the recipient live, their immigration status, and the nature of their relationship all come into play. That’s true whether you give the gift of college tuition or a down payment on a home to a child, you are using an estate planning gifting strategy between spouses to avoid lengthy probate, or you are gifting property like jewelry or automobiles. This article provides insights to help you avoid unwanted and potentially steep tax liability and to ensure a smoother gift giving process.

There are fees or taxes associated with probate, which vary depending on the jurisdiction and can be quite high. Failing to plan carefully can result in greater tax liability and assets not being distributed among beneficiaries as intended. Fortunately, strategies to reduce those fees can have a significant impact on the distribution of wealth upon death. But while some strategies work in certain jurisdictions, they may not be applicable elsewhere. There are also special ways to reduce fees for those over the age of 65. While probate fee planning is a complex process, it’s valuable – and worthy of guidance from a qualified professional advisor.

If you or someone you wish to bequeath assets to in your estate plan is a “U.S. person,” according to the tax authority definition, there are estate planning strategies you can implement to minimize potential U.S. estate taxes. That kind of planning is particularly important if you anticipate exposure to such taxes in excess of the amount that may be protected by available deductions, exclusions, and treaty credits. When considering any proposed plan or strategy, it is also important to factor in the associated costs and ongoing compliance requirements. The applicable tax rules are extremely complicated, and it is strongly advised that you consult a qualified cross-border tax and financial estate planning professional.

Estate planning is a vital part of financial planning and wealth management. But communicating your estate plans is equally vital, to ensure that your plans are executed according to your wishes. That’s especially true when it comes to communicating with the Executor of your estate and those who are designated with Power of Attorney for Property or Personal Care. Too often that communication is overlooked, but you can ensure that those designated persons are well-informed and prepared by writing them a letter that outlines their tasks and responsibilities. The following article includes more information, plus convenient, customizable templates to help you draft those vital communiqués.

If you’re a Canadian living in the U.S. or elsewhere in Canada and planning a return to your home province of Quebec, there are a number of factors you’ll need to consider including the ramifications of such a move on your current estate plan. In this article, we’ll take a closer look at differences between Common Law and Civil Law and how they relate to estate planning.

There are notable instances where having a non-U.S. citizen spouse results in complications when it comes to tax and estate planning.  For example, there is no estate tax marital deduction when the donee spouse is not a U.S. citizen unless a QDOT, a form of qualified domestic trust, is used.  This QDOT structure is not an ideal planning structure in many situations.

The senior population—defined as those age 65 and older—is exploding in both the U.S. and Canada. If you’re planning a move across the border for work or retirement, it’s likely you have an aging family member or two to consider. In this article, we’ll explore the documents you need to have in order as well as other steps to take before you relocate away from the senior citizens you love.

Estate planning issues can create family discord, especially in cases in which there is a sizable inheritance and heirs have disparate circumstances and competing interests. “You seem to know people,” says Terry Ritchie, director of cross border wealth services with Cardinal Point Capital Management Inc. in Calgary, “but when someone dies and there’s money [involved], […]

When a U.S. citizen or U.S. resident alien is married to a Canadian spouse who is not a U.S. citizen, then property transfers between the spouses could be taxable in the United States or subject to U.S. gift-tax rules. Most Canadians are not familiar with a gift tax or an estate tax because Canada doesn’t […]

Are you a U.S. citizen married to a non-U.S. citizen? Or, are you and your spouse both green card and/or U.S. visa holders living in the United States? If so, then you’ll want to be aware of U.S. estate-tax rules that, without proper planning, can result in an outsized tax bill. Recently, we started working […]

Imagine if you were to die tomorrow what your email account would provide for your loved ones: access to your contacts, personal and business communications, photos, and memories. While an email account may not be worth anything in terms of an estate, it could have a high emotional value for those closest to you. Now […]

Avoiding the estate tax when you’re married to a foreign national As cross-border specialists, one of our key concerns in working with each client is the question of citizenship. This is especially true for estate planning, as developing a plan without taking into account citizenship could have dire tax consequences and create hardship for a […]