A person is considered incapacitated when they have lost their ability to make important decisions, including those related to their assets or property.

What happens to your Florida property if you become mentally incapacitated? Your loved ones may encounter significant problems when trying to sell or transfer your property.

Under Florida law, the procedure called “guardianship” may be required in order to determine who can legally undertake the duty and responsibility to make decisions regarding an incapacitated person’s property and assets. Read the rest of this entry »

There is no denying that the United States continues to be a hot spot for many Canadians, and although the housing market crash has begun to recover, prices are still nowhere near where they once were. This coupled with the strength of our Canadian dollar means one thing; it’s a wonderful time to be Canadian. Although, the Canuck in me would say that it is always a great time to be Canadian, now is especially good. That aside, being a Canadian investing in the US real estate market comes with many considerations and decisions. Read the rest of this entry »

In my last update, I wrote about the American Taxpayer Relief Act, the eleventh-hour Fiscal Cliff compromise legislation, which narrowly avoided the return of U.S. estate tax for owners of US properties dying with a global estate worth more than $1 million. It was great news, especially for Canadian Snowbirds and real estate investors looking to take advantage of US real estate prices without jeopardizing the Canadian inheritances destined for their children.

But, as we say, the only sure thing in tax law is that the rules will change eventually. True to form, the latest budget proposal from the US government is suggesting changes that could have significant implications, both for Canadian Snowbirds and US citizens living in Canada. In particular, the ‘permanent’ $5 million estate tax exemption amount is back in play, and major changes in the treatment of certain trusts are proposed. Read the rest of this entry »

Last week a bipartisan group of US Senators known as the “Gang of Eight” unveiled their proposed US immigration reform bill. The 844 page document contains what amounts to an overhaul of almost all aspects of the current US immigration system. It is still to be seen how much of the original bill will make it through the US congressional process. As it stands right now, the bill contains numerous changes of particular interest to Canadians. Read the rest of this entry »

It’s that time of year when Canadians wintering south of the border begin to realize that fairly soon they will be packing their things and making the long trip north again. Some of them will do so willingly, eager to get back to friends and family, others will consider extending their stay by another couple of weeks or months, and still others will wonder if there is not some way to make a permanent move south. Read the rest of this entry »

Parents want what’s best for their children and will go to great lengths to see them succeed and help plan for their futures. Many parents have turned to trusts to provide their children with more sophisticated tax and estate planning to help them financially down the road. Generally, parents look forward to the day when they can see their children married, settled in a career, and raising a family of their own. However, there are no guarantees that their lives will remain here in Canada. Everyday Canadians move to the US, whether it be for work, studies or maybe to follow their potential spouse. Whatever the reason, these Canadians could become US residents or US citizens, an issue which must be addressed if they are beneficiaries of a Canadian trust. For clarity, the issues would apply to any trust that is foreign to the US, however we will be using a Canadian trust as an example throughout our discussion. Read the rest of this entry »

One of the key pillars to estate planning is preservation of wealth by keeping assets away from one’s creditors throughout one’s lifetime. Often, it is the principal residence that is considered a person’s most valuable asset and within reach of creditors in order to satisfy their claims. Read the rest of this entry »

Just hours before midnight on New Years Eve, the US Senate hammered out a tentative deal to avoid sending the country over the Fiscal Cliff. Yesterday, a reluctant, Republican-controlled House of Representatives has also blessed the plan, which deals with many of the major tax issues at stake, while pushing back the spending issues to later into the new year. Read the rest of this entry »

Pierre, a client of ours from Quebec, came to us with a problem. He owned a condo in Florida, and since Micheline recently passed away, he did not want to go to the vacation home anymore and wanted to sell it. The title ownership was in Micheline’s name alone, but her Quebec notarial will left all of her assets to Pierre, including the condo. Unbeknownst to Pierre, even though his notary told him their notarial wills would avoid probate in Quebec, he found out that they did nothing to avoid probate in Florida! Not only would he have to wait a year to sell the condo, but also have to gather numerous documents, hire and pay a lawyer to deal with the probate court in the county where the property is located, and on top of it all, since his wife’s will was written in French, he would have to pay a translator to get a copy in English! What a mess! Read the rest of this entry »

For whatever the reason, each and every day people make the decision to move away from their native country to pursue a life elsewhere. Whether it is a dual citizen looking to give up their passport of one country, or someone looking for a fresh start, the tax implications of being an expatriate are a complicated minefield to navigate. Read the rest of this entry »