Working with a Cross-border Specialist

Working with a Cross-border Specialist

I’m often asked, “what is a cross-border specialist and who would need one and when? Are there any specific issues or challenges that arise from dividing your time between two countries? Does it make sense to hold some of your securities in U.S. dollars, and lastly, are there any special tax and estate issues that need to be addressed?”

Canadians and Americans who cross international borders for work or pleasure face a number unique challenges including financial reporting obligations and various tax complexities. A cross-border specialist ensures a smooth and seamless transition for folks returning to Canada to reside permanently or moving to the U.S. for work. Those individuals require specialized advice with respect to their investments and tax reporting and would benefit from working with a cross-border specialist.

It may make sense for snowbirds to hold some investments in U.S. dollars to minimize the effects of a fluctuating currency if going to the States for a while, and a cross-border specialist can assist in the management of investments of both currencies.

Also, Canadian snowbirds who winter down south are required to keep track of the number of days they spend in the U.S. so they don’t run afoul of the IRS – and, there is documentation that can be filed to help ensure that doesn’t happen. In addition, there are health and medical considerations that need to be addressed before beginning your journey south each year.

A cross-border specialist can also provide support for someone working through estate issues for family members or friends in another country. Questions might arise when working through settling of an estate as an executor, or as a beneficiary of an inheritance from a U.S. relative on the possibilities of receiving those assets on a tax deferred basis while not residing in the U.S., or the best way to maximize exchange rates. Having a network of professionals on both sides of the border can make the process a lot less stressful.

If you’re a U.S. citizen living or working in Canada, a Canadian citizen moving to the United States, or a snowbird who spends the winter months south of the border – we have the resources and expertise to help you navigate the road ahead.

Joseph Dawson, Financial Advisor CFP®

Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, Todd Yuzdepski, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member - Canadian Investor Protection Fund.