Nowadays, it is not uncommon to meet with a married couple who moved from Canada to the U.S. with the intention of living there on a permanent basis, while keeping assets in Canada. We may think about rental property in Canada, shares of Canadian private companies, life insurance, pension plans such as RRSPs or RRIFs. Doing the estate plan or advising the U.S. clients on their tax and estate planning may raise various questions. Using a case study, the speakers will discuss the intricacies and traps this scenario may bring and they will provide tips and tricks to prevent adverse taxes consequences and penalties, as well as planning ideas.

The presentation will answer questions such as:

• Should Canadian assets be transferred to a U.S. revocable living trust; if not, why and what should be done?
• Should the Canadian assets be transferred to testamentary trusts under a U.S. Will?
• Are there taxes payable in Canada upon death of one of the spouses?
• Is there a rollover mechanism at death in Canada?
• Why should you determine whether a Canadian asset qualifies as taxable Canadian property or not?
• What is treaty-protected property?
• Are there withholding tax obligations upon the sale of the Canadian assets or upon the spouse’s death?
• What are the filing obligations; what is a 116 certificate?
• Should a Canadian Will and a U.S. Will be drafted, what about POAs?
• What are the particularities if some assets are in the province of Quebec?
• And more…..

SPEAKERS:

Beatriz Davila, CPA, CPA (Illinois), Partner and Business Advisor with MNP’s International Tax group in Montreal, and TEP

Caroline Rhéaume, cross-border tax lawyer, Montreal, author, speaker, and TEP