Professional Athlete
Relocating to the US

 

Canadian athletes frequently move to the US to play for professional American sports teams. We know that athletes are very tied up during the regular season, but that they value understanding the impact of being traded on their career and financial future. As such, we are comfortable working with both athletes and their advisors/agents, who may be the primary point of contact while athletes are working during the regular sports season.

For Canadian athletes who move to the US for only a short time, such as one sports season, questions arise regarding tax residency. Are such athletes tax residents of Canada or the US? What about athletes who move to the US for multiple seasons but choose to come home to Canada during the off-season?

In addition to questions surrounding cross-border tax, Canadian athletes moving to the US may also have immigration questions; for example, which US visa is ideal for professional athletes? Is the P-1 or O-1 visa more appropriate? Other questions arise if Canadian athletes ultimately desire permanent residency in the US and hope to obtain a Green Card.

Additional questions surround professional athletes’ retirement plans. For example, after having worked in the US, are Canadian athletes eligible for US Social Security payments? Another common question is how Canadian athletes who retire in the US should handle Canadian pensions, such as Retirement Compensation Arrangements (commonly known as “RCAs”).

As the above questions illustrate, making the decision to move to the US necessitates careful pre-departure tax, immigration, and retirement planning. Canadian athletes relocating to the US and their advisors/agents must also be familiar with potential cross-border tax filing requirements, US estate planning and investment opportunities, and how to obtain optimal US health insurance coverage.

Keep reading for more information about these cross-border financial planning topics as they apply to Canadian professional athletes who are moving to the US. 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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Situs Wills, Trusts, and Power of Attorney Documents
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US Gift and Estate Tax
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Retirement Compensation Arrangements (“RCAs”) & Registered Retirement Savings Plan (“RRSP”)

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CPP, OAS, & US Social Security

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The US Health Care System

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Medicare Eligibility & Employer Program

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Life Insurance Issues

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Permanent Residency & Visas

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