Snowbird Desiring More Time in the US

Most snowbirds fly from the cold Canadian snow and into the warm American sunbelt, migrating to states like Florida, Arizona and California for anywhere from two weeks to six months a year. It is common for snowbirds to start heading south for only a short period of time each winter. Over time they find themselves trying to maximize the number of days they spend in the US as they come to value their sunbelt lifestyle more and more over time.

Eventually, many snowbirds would like to spend eight months a year in the US, or even 11 months a year – time that could be used to continue building the community of friends they’ve made down south, improving their golf game, or simply enjoying the weather.

Due to immigration and tax rules, however, spending more time in the US as a Canadian resident can become challenging. Canadians must carefully calculate the number of days they spend in the US each year to avoid going over the limit. Such calculations are quite complicated (although our Substantial Presence Test calculator can help), and snowbirds often end up feeling restricted that they can’t live their lives exactly as they desire.

This frustration prompts our snowbird clients to wonder whether it would just be easier to move to the US on a more permanent basis, avoiding immigration and tax penalties that go along with overstaying one’s welcome in the US as a Canadian resident.

Making the decision to move to the US necessitates careful pre-departure tax, estate, retirement, investment, and immigration planning. Snowbirds who will spend most of the year in the US must obtain adequate health insurance coverage in addition to other insurance products, as well as familiarize themselves with potential cross-border tax filing requirements.

Keep reading for more information about these cross-border financial planning topics as they apply to our snowbird clients. Please note that the topics covered below require detailed, comprehensive analysis before specific recommendations can be made to an individual client, which is the purpose of creating a cross-border financial plan prior to departure.

Residency

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Departure Tax

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Canadian Holding Company

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Situs Wills, Trusts, and Power of Attorney Documents

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US Gift and Estate Tax

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Registered Retirement Savings Plan (“RRSP”)

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Canada Pension Plan (“CPP”)

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OAS Clawback

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The US Health Care System: An Introduction

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Private Health Insurance

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Life Insurance Issues

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Introduction to US Immigration for Snowbirds

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Family-Based Immigration

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Investor-Based Immigration

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