Discover the ins and outs of cross-border financial planning. From tax residency to retirement and estate planning, i2 Wealth provides personalized strategies.
Did you know that in 2021, over one-quarter of Canadian citizens by descent were born in the United States? If you’re part of this growing group—or simply someone with cross-border financial interests—you probably already know that it’s no small feat to manage all the ins and outs of cross-border financial planning.
At i2 Wealth, we know these challenges firsthand; we specialize in helping our clients navigate every aspect of cross-border finances. If you are just getting started with your financial planning, here’s what needs to be on your radar.
What is a Cross-Border Financial Plan? 3 Core Elements
Tax Residency: Where Do You Belong (Financially Speaking)?
Tax residency rules are not exactly cocktail party conversation material. But the tax implications of a cross-border lifestyle need to be factored in; the right tax planning (and tax efficiency) can have huge implications for how much you have to pay out.
The Canada-U.S. Tax Treaty can provide valuable relief, but the correct application requires a nuanced understanding of tax codes and reporting requirements, both in the US and Canada. U.S. citizens and Green Card holders are required to report their worldwide income to the IRS. Here, we can offer great value as your cross-border financial planning firm by helping you avoid costly penalties or missed opportunities for tax credits.
Retirement Planning: Bridging Two Systems
Imagine this: you’ve got a healthy RRSP in Canada and maybe a 401(k) in the U.S. But are you confident about how withdrawals will be taxed when you retire? Spoiler alert: it depends on where you live and how you withdraw. And what about government benefits? If you’re entitled to both Canadian (CPP and OAS) and U.S. Social Security benefits, you’ll need a game plan to maximize income while minimizing taxes.
Estate Planning: Don’t Leave It to Chance
This is where cross-border planning gets really personal. If your will, trusts, or beneficiary designations don’t align with both Canadian and U.S. laws, you could leave your loved ones with unnecessary headaches—or worse, surprise tax bills. For example, U.S. estate taxes can apply to worldwide assets, even if you’re living in Canada. The fix? A carefully crafted estate plan that addresses these cross-border quirks.
Personalized Solutions for Your Cross-Border Finances
Cross-border financial planning isn’t just complicated—it’s personal. We believe that everyone deserves advice that’s tailored to you, not cookie-cutter solutions from a disconnected cross-border financial advisor.
At i2 Wealth, we’re here to help you navigate every twist and turn. We specialize in simplifying the complexities of cross-border financial planning, from tax and estate planning to managing your retirement and financial future. Ready to take charge of your finances with clarity and confidence? Contact us today–Let’s start the conversation.