Before Canadians become permanent residents of the U.S., it is important to understand and prepare for the significant differences between these countries as to cross-border financial planning. Mistakes and missed deadlines in these matters can be costly. There are many considerations. Some are obvious, such as notifying financial institutions and Canadian health care providers of a move and canceling memberships and subscriptions. But did you know that you should sell your car? Consolidate accounts? What should you do about your estate plan? Do you know the implications of the Canadian exit tax? There is a multitude of complications around investments, registered and non-registered.
Expert review of the tax implications of your move is crucial and is specific to the state you are moving to. It is best to close Canadian non-registered investment accounts as most Canada-based investment advisors are not licenced to represent U. S. residents. RRSP accounts can continue, but it may be best to liquidate their holdings to simplify the U. S. cost basis for tax purposes. Given that most U.S. advisors are not well versed in representing Canadians in the U.S., it is apparent that choosing a cross-border financial advisor who is licenced in both countries is the way to go. At Cardinal Point, this is who we are. Our specialists can offer real assistance, smoothing out this complicated transition.
