What is Cross Border FInancial Planning?
When considering moving from Canada to the U.S. or as an American in Canada, individuals may be overwhelmed by issues with respect to laws and regulations on both sides of the border, potential tax impacts and seemingly endless roadblocks. Questions about RRSPs, 401Ks, how to get health insurance in the U.S. and how to avoid double taxation, can leave one confused and without answers. More importantly, figuring out timing issues and how all the elements fit together can be daunting.
MCA Financial Planning Inc. develops a road map to help Canadians and Americans in Canada achieve their goals in the areas of taxation, estate planning, retirement, health coverage & insurance, investment management, and immigration. Our cross border financial planning process creates the path from one country to the other, allowing clients to take advantage of opportunities and avoid costly mistakes.
Common concerns facing clients:
Canadians Moving to the U.S.:
- Am I eligible for a visa/green card?
- How much Canadian departure tax will I owe?
- Can I obtain health care coverage?
- What do I do with my Canadian RRSP?
- What is the impact to my Canadian pensions?
- Will I be subject to U.S. Estate Tax?
Americans in Canada:
- Am I still subject to the U.S. tax system while living in Canada?
- What are the implications of abandoning my green card or expatriating?
- Will I maintain my eligibility for U.S. Medicare?
- What type of estate planning do I need as an American living in Canada?
- What do I do with my IRAs, 401Ks, etc.?
After your plan is created, MCA Financial Planning Inc. will partner with Altro Levy LLP to create the legal structures required to implement the plan.
Altro Levy LLP
Tax & Estate Planning
The team at Altro Levy LLP has developed particular expertise in the areas of:
- U.S. estate tax for a Canadian becoming a U.S. resident
- Creating corporate structures for setting up a business in the U.S. (LLCs, C Corp, S Corp, etc.)
- Probate planning
- Incapacity planning
- Asset protection
U.S. Immigration is a catch-all phrase that describes all manners of legally entering the U.S. Governed by the U.S. Citizenship & Immigration Services and the U.S. Department of State, there are a variety of options available for individuals who want to live and work in the U.S.
Visits to the U.S. by Canadians for pleasure or certain limited business activities do not normally require an entry visa thanks to on-going agreements between the U.S. and Canada regarding their shared border.
For those individuals looking to reside in the U.S. permanently and indefinitely this goal can be achieved by obtaining U.S. permanent residency, often referred to as a U.S. green card. Pathways to obtaining a green card include:
- Sponsorship by a close family member who holds U.S. citizenship or their own U.S. green card
- Sponsorship by your U.S. employer for permanent residency through an EB-1, EB-2, EB-3 or EB-4 visa
- Becoming an immigrant investor, which generally requires investments of $500,000 to $1 Million USD, and petitioning for an EB-5 visa
Individuals looking to work or start a business in the U.S., but not necessarily reside their permanently, have further U.S. Immigration options. The most common work or entrepreneur visas include:
- E-1 Treaty Trader visa
- E-2 Treaty Investor visa
- H-1B Speciality Occupations visa
- L-1A Intracompany Transferee – Executive or Manager
- L-1B Intracompany Transferee – Specialized Knowledge
- O-1 Individuals with Extraordinary Ability or Achievement
- TN NAFTA Professionals