Do you know enough about cross-border issues to advise clients?
“We have a leading cross-border wealth management practice in North America, and we’ve been doing it for a decade. We’re also working a whole lot in Canada and the US, so we’re here to solve these problems for people. trends,” he said, noting that customers come in wondering why it’s so complicated. “Financial institutions in either country really don’t have a solution for this, which surprises people. They think so, because their phone works in both countries, their money should be too.”
Coleman said that government regulations are also changing. For example, the US has a lot of leeway in the US estate tax and gift tax. Therefore, if it is less than $11.5 million, its estate tax is not an issue. But, that number will drop to a few million dollars by 2025, so “there may be people who think ‘this doesn’t affect me,'” he said, “but they need to get beyond that, or they will be.” “
There can also be complications when one spouse is a US tax filer, and the other is Canadian. This could have implications for capital gains on their Canadian home because it is tax-free for a Canadian partner, but taxable for a US-born partner.
“It’s possible to plan something fairly easy to make it a non-taxable event for both of them,” Coleman said. “But, if they don’t get involved, they’ll be very surprised that they could have millions of dollars in taxes, and we regularly encounter it where customers didn’t know, and it wasn’t even a blip. . Radar for his domestic advisor.”
Coleman recommends that advisors investigate the small number of cross-border tax and property experts online, and the financial advisors they work with, and then partner with them to understand issues on both sides of the border. Interaction of the system, and where there are cracks.