Navigating Cross-Border Finances in Retirement for Dual Citizens
Dual Canada/U.S. Citizen Moves Back to Canada
Seeking greener pastures south of the border, many Canadian executives and entrepreneurs move to the U.S. for work. They even end up taking U.S. citizenship along the way. Once retired, dual citizen folks can decide if they want to continue to live in the U.S. or move back to Canada. But such a move can create several challenges, including tax, legal and investment-related considerations.
Harold and Maude faced quite a few.
They owned a successful business in Arizona where they planned to live out their retirement years. But when health issues arose, they decided to move back to Canada to be close to their immediate family. Sadly, Harold developed dementia. He was the patriarch of the family and could no longer manage his financial affairs.
His wife Maude was never involved in the finances and asked her adult children to take on that role. A new Canadian will was drafted, and power of attorney documents were put in place. Harold and Maude had amassed a fair amount of wealth, the majority of which was in the U.S. in retirement accounts and a U.S. trust.
When Harold died, dealing with the U.S. broker dealer managing the accounts became more challenging. The adult children found the U.S. tax filings a burden, so they hired a professional cross-border tax advisory firm to get the filings up to date. The tax advisory firm suggested it may be a good idea to work with a dual-licensed cross-border financial advisor to better manage the investment assets and move the trust assets to Canada to avoid future estate complications.
That’s where we stepped in.
The Solution
Licensed in both Canada and the U.S., we opened an IRA and worked with Raymond James Ltd. to unwind the U.S. trust account for Maude. We then helped with the transfer of assets in-kind to a Canadian USD investment account.
We were able to help Maude create a disciplined investment strategy with her North America-wide assets, so she can achieve her financial goals.
We performed an in-depth financial analysis of her various holdings. We were able to give her the reassurance that she would have more than adequate funds to care for herself, meet unexpected expenses throughout her retirement years and leave an estate for her family members.
Are you considering a move back to Canada from the U.S.? Reach out to us so we can develop a solid financial plan and strategy that enables you to meet your lifestyle and financial goals.