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Will & Estate Planning Considerations for Canadians with U.S. Connections

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If you or someone you wish to benefit in your estate plan is a US person, estate planning strategies aimed at minimizing the potential exposure to U.S. estate taxes are advised. That is especially important when the anticipated U.S. estate tax exposure exceeds the amount that can be protected by available deductions, exclusions, and treaty credits. If you are able to minimize a beneficiary’s unnecessary exposure to U.S. estate taxes, then estate planning for U.S. estate tax is certainly worthwhile. When considering any proposed plan or strategy, it is also important to factor in the associated costs and ongoing compliance requirements.

will and estate planning

Summary and Takeaways

Canadians who wish to include U.S. residents or citizens in their estate planning as beneficiaries need to be aware that U.S. persons may be liable for significant estate taxes. But there are effective strategies that can be implemented as part of your Will & Estate planning to minimize or eliminate such tax exposure. That can help you preserve wealth as it is transferred to beneficiaries. It is also important to factor in any associated costs or ongoing compliance requirements that may arise as part of your Will & Estate planning.

Key Takeaways

  • One way that the U.S. tax authorities determine who is liable for taxation is through what is known as a Substantial Presence Test.
  • But certain exemptions to that test are available, including provisions for persons who commute across the border for work.
  • There are also specific marital deductions available to U.S. spouses that can help you defer or eliminate estate taxes.
  • Using a Bypass Trust can safeguard assets transferred to children who would otherwise have those assets taxed.
  • Consulting an experienced cross-border financial and tax specialist for Will & Estate planning is strongly advised.

Who is a U.S. Person?
A U.S. person is anyone who meets any of the following criteria:

  1. They are a U.S. citizen
  2. They are a U.S. permanent resident (Green Card holder)
  3. They meet the “Substantial Presence Test,” which is a test based on the number of days they spend in the U.S. each year. Generally, they meet this criteria if they spent more than 30 days in the U.S. in the current year, and the sum of the days spent in the US as calculated below is greater than 182 days:
    • Days of current year
    • + 1/3 * Days of 1st previous year
    • + 1/6 * Days of 2nd previous year 

There are certain exemptions to the Substantial Presence Test; and below are a few of the most common:

  • The Commuter Exemption – can apply to residents of Canada who regularly commute to employment in the U.S.
  • The Closer Connection Exemption – can apply if they spent less than 183 days in the U.S. during the current calendar year; have a “tax home” in a country other than the U.S., and file Form 8840 – Closer Connection Exception to the Internal Revenue Service (IRS) for each applicable year, in a timely manner.
    • A non-exhaustive listing of the factors used to determine where someone’s tax home is located include: location of permanent home; location of family; location of personal belongings (e.g., vehicles, artwork, jewelry, items with sentimental value, etc.); location of social, political, cultural, or religious organizations; location of routine banking activities; and location of the jurisdiction where the individual votes and holds a driver’s license

Where Both Spouses are U.S. Persons
If both spouses are U.S. persons and the gross value of one spouse’s estate, after taking into account any gift tax exclusion used prior to death, exceeds the exclusion amount ($12.92 million USD for 2023, indexed annually), they may be exposed to U.S. estate tax. In such cases, there are several planning options that may be available for the spouse who predeceases:

  1. Unlimited marital deduction: Transfers on death from a U.S. citizen to a U.S. citizen spouse, either outright or through a special marital trust under each Will, can take advantage of an unlimited marital deduction against U.S. estate tax. This allows for a deferral of any U.S. estate tax until the death of the surviving spouse or payment of capital from the spousal trust. The unlimited marital deduction is also available for assets passing from the deceased spouse under their Will via a QTIP trust, which must meet certain legal requirements. For Canadian tax purposes, a QTIP trust may qualify as a “qualified spousal trust” under the ITA, allowing for the tax-deferred rollover of assets from the deceased spouse to the trust. The assets in the qualified spousal trust will not be subject to Canadian tax until they are either disposed of or the death of the surviving spouse
  2. Credit shelter trust (bypass trust): A bypass trust can be established under each spouse’s Will, generally funded in an amount up to the exclusion amount ($12.92 million USD for 2023, indexed annually), to ensure that a U.S. person’s estate tax credit is utilized, so that the amount allocated to the bypass trust passes to their intended beneficiaries free of U.S. estate tax.
  3. Portability of exclusion amount: For U.S. citizen spouses, the exclusion amount of approximately $12.92 million USD (2023, indexed annually) is portable, meaning that if one spouse dies, any unused exclusion of the deceased spouse may be transferred to the surviving spouse, subject to certain terms and conditions, by making certain elections. This effectively allows for up to approximately $25.84 million USD (2023, indexed annually) of assets to pass free from U.S. estate tax for a U.S. citizen couple. 
  4. Life insurance: Consideration can be given to purchasing life insurance on each spouse’s life in an amount sufficient to fund the expected U.S. estate tax liability. Life insurance owned by a person other than the insured person will not be subject to U.S. estate tax. Consideration can also be given to using a trust with special terms to own large insurance policies, rather than individual ownership, to remove the value of the proceeds from the taxable estate.

Where Only One Spouse is a U.S. Person
Non-U.S. person spouse’s Will: bypass trust to benefit a U.S. person spouse 
If a non- U.S. person’s Will transfers assets outright to a U.S. person surviving spouse, those assets will be included in the U.S. person’s worldwide estate for U.S. estate tax purposes. To avoid additional U.S. estate taxes, it is important to transfer the assets to a “bypass trust,” which will not be included in the U.S. person’s worldwide estate on death, as long as certain requirements are met, including limits on the U.S. person’s participation in discretionary decisions. If these trust limitations are not made, the assets in the bypass trust may be subject to U.S. estate tax. For Canadian tax purposes, assets with accrued capital gains may be rolled over to a “qualified spousal trust,” which will be tax-deferred until they are disposed of or the surviving spouse dies.

U.S. person spouse’s Will: plan for utilization of spousal credit under the Canada-U.S. Tax Treaty 
Under the Canada-U.S. Tax Treaty, a U.S. person spouse may take advantage of a spousal credit against U.S. estate taxes. To qualify for the spousal credit, the property must pass to the surviving non-U.S. person spouse in a manner that would otherwise qualify for the U.S. marital deduction, either outright or to a “qualified terminable interest property trust” (QTIP trust). The spousal credit is approximately equal to the lesser of: (1) the unified credit (exclusion amount up to $12.92 million USD for 2023, indexed annually) or (2) the U.S. estate taxes imposed on the qualifying property, allowing up to $25.84M USD (2023, indexed annually) of assets to pass from a U.S. person spouse to their non-U.S. person spouse, free of U.S. estate taxes.

U.S. citizen spouse’s Will: qualified domestic trust (QDOT)
A qualified domestic trust (QDOT) is a special trust that can be established in a U.S. citizen spouse’s Will. A QDOT allows the transfer of assets from a U.S. citizen spouse to a non-U.S. citizen spouse, which would not normally qualify for the U.S. spousal credit available to two U.S. citizen spouses. This allows a deferral of U.S. estate taxes until the death of the surviving U.S. citizen spouse. The U.S. estate tax that would otherwise be due on the death of a U.S. citizen spouse is instead paid upon distribution of any capital of the trust to the surviving non-U.S. citizen spouse, or upon the non-U.S. citizen surviving spouse’s death. However, the QDOT only defers U.S. estate taxes, much like the deferral of capital gains available for Canadian tax purposes for property passing between spouses. The deferred tax is generally imposed at the death of the non-U.S. citizen’s surviving spouse, based on the gross value of the property remaining in the QDOT. It is important to note that if the value of the QDOT increases, the tax at the time of the non-U.S. citizen surviving spouse’s death could be higher than if the tax had been imposed at the time when the first U.S. citizen spouse died. A QDOT must meet a number of complex requirements, including having at least one U.S. person trustee and being governed by the law of a U.S. state.

U.S. person spouse’s Will: credit shelter trust (bypass trust)
A credit shelter trust (bypass trust) can be established in a U.S. person’s Will in an amount up to the exclusion amount, in order to fully utilize the U.S. person’s estate tax exclusion. In this way, the trust assets may eventually pass to the non- U.S. person spouse free of U.S. estate taxes.

Life insurance
The non-U.S. person spouse may consider purchasing life insurance on the life of the U.S. person spouse, in an amount sufficient to fund the expected U.S. estate tax liability. Or life insurance on the life of the non-U.S. person spouse may be designated to a bypass trust for the benefit of the U.S. person spouse. The insurance may be owned through a special trust called an “irrevocable life insurance trust” as opposed to direct ownership, in order to exclude the value of the proceeds from the U.S. person spouse’s estate.

Holding assets between spouses
To minimize U.S. estate taxes, real property holdings between spouses should be carefully structured. Real property held in joint tenancy with right of survivorship is presumed to be included at its full value in the estate of the U.S. person spouse, except to the extent that the non-U.S. person spouse can establish the amount of their contribution to the purchase price. The value of any mortgage is generally not deductible from the property value. Canadian real estate may be held solely by the non-U.S. person spouse, so it’s not included in the estate of the U.S. person spouse − while any U.S. real estate might be held in the name of the U.S. person spouse. Assets of fixed value may be held in the name of the U.S. person spouse, while assets expected to appreciate may be held in the name of the non-U.S. person spouse. In that way, appreciating assets are excluded from assets subject to U.S. estate taxes.

When Intended Beneficiaries (including children/grandchildren) are U.S. Persons
If the intended beneficiaries of your estate are your children or grandchildren, who are now (or are likely to become in the future) U.S. persons, you may want to consider transferring assets to a bypass trust under your Will for their benefit. That will help  protect these assets from U.S. estate taxes. The assets in the bypass trust will not be included in the U.S. person beneficiary’s worldwide estate upon their death, as long as the bypass trust meets certain requirements. Those requirements include restrictions on the U.S. person beneficiary’s participation in certain discretionary decisions, such as the decision to pay income or capital, so that they do not have too much ownership of the assets within the bypass trust. But if these restrictions are not in place, the value of the assets in the bypass trust could be included in the U.S. person beneficiary’s estate on their death and subject to U.S. estate tax. In addition to protecting assets from U.S. estate taxes, using a trust can also provide other benefits. Those include ensuring the preservation of wealth for future generations, minimizing probate fees, and providing protection from matrimonial claims and creditors. However, it is important to assess the differences in Canadian and U.S. taxation and compliance for these potential trusts. Please consult a qualified Canada-U.S. advisor for more insight in that regard. 

Conclusion
If you aren’t sure whether you or one of your beneficiaries is a U.S. person, or if you would like a comprehensive review of your estate plan and financial plan, please contact Cardinal Point. 

Moving Across the Border and Leaving Your Aging Parents Behind

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Moving from one country to another, whether for work, retirement, or any other reason, often means leaving close family and friends behind. This decision can take on a special significance when those family members are your aging parents.

The growth of the U.S. population age 65 and older exceeds that of the total population and those under the age of 651. Over the next 20 years, Canada’s senior population — those age 65 and older — is expected to grow by 68 percent2.

As we all get older, the dynamics of our relationships with our parents change in many ways. One significant change is the level of dependency on their adult children that many parents may begin to have. This can take many forms, but whether it is help with groceries or medication reminders, lending assistance is generally more complex when you live farther away.

Moving Boxes

Summary and Takeaways

Taking care of older parents is significantly more complicated if you are moving to a different country. But the challenges may be mitigated by careful planning prior to your move. Give yourself plenty of time to discuss plans with your parents and put them into place while you’re still nearby. Family members, professional care providers, financial advisors, and others can be enlisted to help ensure that your parents have the attentive help they need in your absence.

Key Takeaways

  • Open and empathic communication with your parents is essential, because it may involve sensitive discussions to create contingency plans to support their needs in the event they become less independent.
  • But such conversations can potentially become much more difficult if you’re away or if they become ill or incapacitated. It is always best to have these discussions now versus later. 
  • If you are designated with Power of Attorney over the affairs of your parents, it may be prudent and wise to appoint someone else who will be living close to your parents. 
  • Organize any important legal and financial documents that your parents have, so that they can be accessed if necessary, by that person with Power of Attorney.

When you are first thinking about a major move, it’s important to consider whether a parent or other family member has delegated power to you within a Power of Attorney for Personal Care or a Power of Attorney for Property (or other similar documents, which vary by jurisdiction).  Being an attorney for property or personal care means that in the event that the person is unable to make their own care or financial decisions, you have been named as their choice to do so.

You would likely have been chosen based on family dynamics at the time the documents were prepared. However, this should be revisited prior to a move to ensure that the person who is currently the most appropriate choice is named and that person can continue to act in their named capacity. If the designated attorney doesn’t live nearby, personal care decisions can be difficult to make. If the named attorney does not live in the same jurisdiction as the parent, financial institutions may be unable or unwilling to take instructions.

Additional tax reporting on the part of the named attorney may also be required in the event of a cross-border move. Generally, appointments within a will should be reviewed as part of an overall estate plan discussion. Where possible, schedule a family discussion about these matters ahead of your move. If changes are not made before a parent’s condition deteriorates, it will be difficult, if not impossible, to make amendments or appoint a new attorney. Of course, if your parents don’t have these documents already in place, they should be strongly encouraged to have them drawn up. Otherwise, by the time the attorney is required to act, it is too late to do so.

Whether named as an attorney or not, most of us have a strong interest in seeing our parents live their best life possible. In most cases, the aging process means that there are changes in need and ability that can either creep up gradually or very suddenly in the event of an adverse health situation.

Keep in mind that your parents are adults with a lifetime of caring for themselves and making their own decisions. Their identity and self-respect may center on their role as parents and adults. If they feel they are losing control to others, they may resent and resist what they may see as efforts to rob them of their independence. There are no easy solutions, but open communication and allowing them look after themselves and make their own decisions, to the extent possible, is important.

Over time, and at different ages, most people will experience some decline in physical and/or cognitive capability. Staying in close contact with your parents may make it easier to become aware of these changes.  However, bear in mind that if changes occur gradually, they can actually be difficult to notice unless you are making a conscious effort to do so. It can also be helpful to stay in touch with local family members or friends who see your parents more often and may have somewhat different perceptions than you have at a distance.

These physical/cognitive declines in capability, as well as your parents’ responses to them, will dictate what type of help they need and will welcome, or at least accept. The particular combination of needs will develop over time and will be as individual as your parents are, based on their abilities and lifestyle. There could be difficulties keeping up with what is required for day-to-day life: housework, meal preparation, yard work, or paying bills on time. It could be that personal care will become an issue where support is required for grooming, dressing, medication, and other personal tasks. They may need support in running errands and attending appointments, even to the extent that they are no longer safe drivers. Modifications to the home might be needed such as grab bars or adjustments like removing rugs and other trip hazards. There may also be emotional support required by the parents whose lives are changing and by those providing primary care.

If you are the property attorney and working from afar, preparation is key. Set up online access where possible to facilitate future activity such as access to financial statements, medical records, and tax receipts. This may be easier to set up when you are local to your parents rather than at home across the border. Having the Power of Attorney document accepted by your parents’ institutions may require an in person visit as well, so contact the institution to determine what will be needed. This is a priority for critical providers such as the bank and insurance companies.

If your parents need help paying bills, setting up payments to run automatically, rather than requiring manual activity, will reduce the risk of missed payments as well as the amount of work required. Consolidation of accounts such as investment accounts or credit cards, where possible, will simplify their financial situation as well.

Create a place to store important information such as your parents’ SSNs, bank account and insurance policy details, and health card numbers so you have them handy as needed.  Include a list of payments being made manually and those that require periodic activity. It may be helpful to have copies of documents such as deeds, loan documents, investment statements, and insurance policy statements.

As needs increase over time, it becomes essential that providing support is a team effort consisting of local family members or friends, distant family members, and local community support services. It’s ideal to start the team approach early to avoid crisis situations such as preventable falls, dangerous neglect of health needs, or emotional burnout. If possible, reach out to your parents’ neighbors and exchange information, encouraging them to contact you if they have any concerns.

The family doctor is a key member of the team, providing an objective view of the situation.  Ensure that the Personal Care Attorney document is on file with the doctor and any specialists. Your parents’ doctor should also be able to point you in the direction of available community services. An assessment of your parents’ needs, to determine whether they qualify for any free or inexpensive support, may be available. If so, take advantage of that opportunity. Keep in mind that reassessment should be made periodically as their ability to manage their life independently changes over time. An assessment of the home environment with recommendations to improve safety and comfort is also valuable if this is offered by community services in their area.

Depending on financial resources, a wide range of services are likely available for both household and personal help. Starting to engage help early, when the help required is less invasive (such as yard work rather than meal preparation), may make it easier for independent-minded parents to accept.

Whether paid help is accessible or not, family members near and far need to work as a team, contributing what they are able to the parents’ care to avoid overburdening any one person. Anyone who offers to help should be given something to do, making them part of the team as needs evolve. This can include financial, logistical, and emotional support that may be easier to provide from afar in addition to tasks that must be done in person.

As much as it takes a village to raise a child, it takes a community of people working together to support family members who are no longer able to live as independently as they once did. We encourage you to work with your family and within your parents’ community to ensure that they continue to live well as their life evolves.

Through our financial planning process, Cardinal Point assists clients and their families by reviewing estate plans, including appointments in place, and outlining strategies to assist all parties.

1 https://www.census.gov/library/stories/2018/10/snapshot-fast-growing-us-older-population.html

2 https://www.cihi.ca/en/infographic-canadas-seniors-population-outlook-uncharted-territory

Cross Border Transition Planning – RESPs

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“How do I move my financial life to another country?” It’s a question we hear from many clients as they begin making a cross-border transition. When you are making the move to the U.S., you want to transition your finances smoothly and seamlessly while saving time, headaches, and every dollar you possibly can.

Much like financial planning, transition planning is a process and not a transaction or an end in itself. And like financial planning, the most effective transition planning hinges on a clear understanding of what you want to achieve in terms of lifestyle both now and in the future.

One of our key roles as cross-border financial planners is to learn where you are trying to go (your goals and objectives) and then design a detailed plan to test the viability of your goals/objectives and ultimately get you to your destination. After all, without a flight plan, how can you know which direction to go?

One important area that should be considered when making a move across the border is education planning.  As a family you may have started a savings plan for you or your children’s education.  Registered Education Savings Plans (RESPs) are a popular savings vehicle in Canada for this goal due to available government grants, bonds and tax savings.  How are these accounts treated when one or both of the parties involved becomes a U.S. resident for tax purposes?

Subscriber (Owner) – The tax-sheltered status of an RESP only applies to Canadian tax residents.   With a move to the United States, income and capital gains within the account will now be reportable and taxable on the subscriber’s U.S. return.

IRS Tax Reporting – RESP accounts require annual disclosure on the subscriber’s U.S. tax return by one of two methods. The first is a school of thought that these are foreign trusts that require reporting on IRS forms 3520 and 3520-A, with income reported annually. The second method is to report the income annually on an IRS Schedule D and include a statement in the return indicating that the account is treated as a taxable brokerage account instead of a foreign trust.  Additional reporting may be required for the investments within the account. If you have already moved to the U.S. and filed a tax return, check with your accounting professional before deciding which of these options to use or before making any changes to your reporting.

It is possible to change the subscriber on an account to someone who is not impacted by these reporting requirements, but other factors relating to the Beneficiary and your contributions also need to be considered.

When a Beneficiary becomes a non-resident of Canada, contributions to the RESP are no longer allowed and the beneficiary is no longer eligible for government incentives.  If Canadian residency is re-established in the future, contributions can resume, and grants will again be paid, but the period the beneficiary was a non-resident does not qualify for accumulated grants.

Educational Assistance Payments (EAPs) are based on enrollment in qualified post-secondary studies or a specified educational program and

are comprised of earnings and any government incentives (grants, bonds).  A beneficiary must be a resident of Canada in order to receive the government incentive portion as part of the EAP, however, a non-resident can receive income earned within the account. An EAP may also be paid up to six-months after ceasing enrollment.   Thus beneficiaries qualify, in part, whether they remain a resident of Canada or become a tax resident of the United States.  When an EAP is made, The RESP promoter will issue a tax slip to the beneficiary, and the beneficiary will claim this on their personal tax return for the year of receipt.

If the beneficiary has completed their education, it may be possible to replace the beneficiary with one who can use the EAP government payments or investment earnings; however, if this is not an option the subscriber may need to close the account.

When an RESP is closed, the subscriber’s contributions can be withdrawn tax-free.  All grants and bonds remaining within the account must be returned to the government.  However, earnings can only be withdrawn (known as an Accumulated Income Payment, or AIP) if the account has been open for 10 years, the beneficiaries are at least 21 and not attending post-secondary education, AND, here’s the glitch, the subscriber is a resident of Canada.

If the RESP must be closed and the conditions for an AIP are not met, the remaining earnings in the account will be paid to a designated educational institution in Canada of your choosing.

If you are contemplating a move to the U.S. and have an RESP that has been open for greater than 10 years and beneficiaries that are over age 21, there are other options that may be available while you are still a tax resident of Canada.

The decision whether to keep your RESP open or close the account is as unique as your personal circumstances.  The knowledge and expertise of a cross-border planning professional can help you to determine what solution will work best for both the subscriber and beneficiary of the plan.  Please reach out to Cardinal Point to discuss how we can help you to make the choice that makes the most sense for you.

Estate Disputes: Keeping the Peace

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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], their real colours come through.”

Managing delicate family dynamics can be challenging, Ritchie adds, but there is much you can do as a financial advisor to prevent and minimize potential conflict. Ritchie offers the following advice for helping clients keep family peace before and during a wealth transfer:

Encourage open dialogue

Ritchie recommends hosting a family meeting that includes the client and all the beneficiaries of the estate as part of the estate planning process. Heirs who are unable to attend in person can connect by speaker phone or online. The conversation should cover how the wealth transfer will unfold and issues unique to that case that might arise.

As the financial advisor, you are in a position to address family members’ questions about the ins and outs of the wealth transfer. For example, you can field questions that may arise regarding taxes, which can complicate the process, especially if there are cross-border tax issues.

But the level of disclosure you get into — such as the client’s net worth and the distribution of assets — is your client’s call. Ritchie lets his clients decide whether it makes sense for him, as the advisor, to communicate with the family. Once he has the approval to engage the family, he is careful to treat the children equally and be up-front about how he’s helping their parents.

Improve your client knowledge

Expand the scope of your discovery process to include getting to know your clients’ family dynamics. Ritchie usually holds an in-depth conversation with clients about how their children are faring, asking if there are any issues he should be aware of that could complicate the wealth transfer.

For example, Ritchie becomes attuned to the marital status and financial circumstances of his clients’ children, which helps him get a better sense of their motivations. By becoming familiar with your clients’ children, you create an opportunity to continue a relationship with that generation.

“I have a pretty good understanding of the cast of characters I might be dealing with in the future,” Ritchie says. “Many advisors don’t go that deep.”

Take the heat

If your client feels caught in the middle of an intractable sibling rivalry over the inheritance, Ritchie says, help ease the stress by acting as an intermediary.

He has faced situations in which clients’ children want to dictate the terms of how and when the assets will be distributed. In one case, one sibling felt that the wealth was being divided unfairly, because others were receiving a larger portion to include their children.

In such cases, Ritchie will take on the role of “bad cop,” enforcing the client’s expressed wishes and explaining the reasons behind the decision.

When the children prove relentless in pushing for their preferences, he often tells his clients: “Don’t be the bad guy, let me be the bad guy.”

Thinking About Moving to Canada? What You Need to Know

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Irrespective of where you stand politically, the circus currently playing out in the contest for the next President of the United States has a number of Americans—both Democrats and Republicans—looking at options that might include leaving the United States and moving to Canada.

Indeed, by midnight of March 1—Super Tuesday in the United States—searches for “How to move to Canada” had spiked by 1,500%, according to Google Trends.

For some, leaving the country might seem rather extreme. However, we get it!

At Cardinal Point, many of us have a stake in the direction of our political system in both Canada and the United States. And we are intimately aware of the unique immigration, financial, tax, investment and estate-planning implications of becoming an American in Canada. We understand the immigration options and the challenges those decamping for the north might face.

Before Americans hop into their cars, fill their gas tanks (in gallons) and make their way to Canada, they first need to be aware that one can’t simply show up at the Canadian border and expect to live and work in Canada. Like the United States, Canada has a formal immigration process that must be adhered to.

In order to live and work in Canada, you might be able to secure your immigration via one of a number of business and family categories.

Canada’s family immigration laws differ from those of the United States. Notably, you cannot just marry a Canadian citizen and expect to automatically become a Canadian citizen. A formal process must be adhered to before a spouse of a Canadian citizen can live permanently in Canada and ultimately seek Canadian citizenship.

http://www.cic.gc.ca/english/helpcentre/answer.asp?qnum=357&top=5

If you are already employed in the United States, your occupation might qualify you for one of Canada’s Skilled Worker Entry programs. This would entitle you to a visa to live and work in Canada. And depending on your work or trade, you might be entitled to the new Express Entry application process.

http://www.cic.gc.ca/english/immigrate/skilled/index.asp

If you are self-employed in the United States, you might be able to qualify for business immigration to Canada under the Self–Employed Person program. If you have a specific occupation that fits into the Government of Canada’s Arts and Culture or Technical and Skilled Occupations in Art, Culture, Recreation and Sport, you might be able to immigrate to Canada under that program.

http://www.cic.gc.ca/english/immigrate/business/self-employed/index.asp

Under the Provincial Nominee Program (PNP), Canadian provinces and territories are allowed to nominate persons who wish to immigrate to Canada and who are interested in settling in a particular province. Each Canadian province – except Quebec – have agreements with Citizenship and Immigration Canada (CIC) that have developed programs to welcome certain nominees to settle and work in the province and contribute to the community.

http://www.cic.gc.ca/english/immigrate/provincial/index.asp

If you would like to start a business in Canada, you might be entitled to apply for the Start-up VISA. You would have to have a Letter of Support from a designated angel investor group, venture capital fund or business incubator. You must also meet specific ownership requirements in the business. Get scores of at least 5 in the Canadian Language Benchmark test in either English or French and finally meet sufficient settlement funds based on the size of your family.   You also must be able to secure a minimum investment of $200,000 from a designated Canadian venture capital fund or $75,000 from a designated Canadian angel investor group. No investment is required if you are accepted into a Canadian business incubator program.

http://www.cic.gc.ca/english/immigrate/business/start-up/eligibility.asp

The immigration process is definitely the first hurdle that you would have to overcome before entering Canada. It is a process and for some could be a rather costly one as well.

Working with appropriate Canadian immigration counsel, the advisors at Cardinal Point are well-positioned to assist you in partnering with the right attorney through this process.

But beyond the immigration hurdle, if you remain a U.S. citizen, you would still be considered a resident of the United States for income, gift and estate-tax purposes. So if you were hoping to avoid the tax policies of the previous and next administration, I’m afraid you’re out of luck.

As a U.S. citizen, you would be required to continue to file U.S. income-tax returns on your worldwide income (even if that income is only now in and from Canada). And you would have to comply with a number of other foreign reporting and compliance requirements.

Furthermore, as a resident of Canada, you would also be subject to tax in Canada on your worldwide income, including any income that might continue to trickle in from the United States.

Although both countries would have the right to tax you on your worldwide income, you would be entitled to apply foreign tax credits against the same source of income to help to reduce the perceived exposure to double taxation. However, without proper tax planning upon entering Canada, and without continued ongoing planning, you could find yourself exposed to double taxation and a number of nasty tax surprises.

Fortunately, we have the unique expertise to assist you so that you can enjoy the Canada-U.S. lifestyle.

To that end, we would encourage you to request our Cardinal Point White Paper: Manage your Canadian and U.S. cross-border lifestyle.

This paper will provide you with additional insight into how a Cardinal Point cross-border financial advisor can assist you with your unique cross-border financial planning complexities.

And if it does not make sense to move to Canada, bear in mind that our offices in the United States can provide you with comprehensive, U.S.-only wealth management services.