Case Study: Moving from Silicon Valley to Montreal and Avoiding Exit Taxes

The Problem

When Claire and Marcelle* contacted SWAN, they were living in Silicon Valley and planning to move home to Montreal. 

Both worked in well-known technology firms and had built up significant assets — including 401(k)s, IRAs, company stock plans, and substantial savings.

Their biggest concern was taxation. 

They wanted a smooth, tax-efficient transition back to Canada and were worried about how to handle their US-based investments and potential exit tax as green card holders. They also owned a home in the US, which they planned to sell, and they needed to complete the move before September so their daughter could start the new school year in Canada.

The Solution

We started by addressing their cross-border tax exposure. 

Because they were both green card holders (but not US citizens), the risk of an exit tax was real if they were classified as “covered expatriates.” After reviewing their total assets, we determined that their combined investable assets were just under $4 million US — below the exit tax threshold of $2 million US each.

SWAN’s team did a tax consultation with the couple to help them determine which of their investments would trigger capital gains and how to manage those properly. We reviewed their short- and long-term capital gains in California and calculated what needed to be sold before moving.

We also ensured that their holdings complied with Canadian regulations. For example, US mutual funds are considered PFICs (Passive Foreign Investment Companies) and can lead to harsh tax treatment in Canada. To avoid this, we guided them through selling or restructuring those investments before their move.

For their company stock plans (RSUs), we timed the move so that any unvested shares would vest before they left the US. This way, they wouldn’t lose value by leaving their jobs too early.

We also helped them:

• Complete Roth IRA contributions before moving (since these are easier to manage while still a US resident)

• Transfer and manage their IRAs once in Canada under our cross-border platform.

• Introduced them to and coordinated with accountants and legal professionals on both sides of the border to make sure everything is compliant.

Throughout the process, we provided a lot of one-on-one guidance and support — including calls, emails, and document reviews — to ensure that every financial aspect of the move aligned smoothly between US and Canadian systems.

Why This Worked

Cross-border moves are complex, but what made this successful was careful planning and timing. 

By getting ahead of key tax and investment decisions, Claire and Marcelle avoided unnecessary taxes and complications.

Because we manage both US and Canadian accounts, we were able to handle their IRAs directly rather than simply advising from the sidelines. This gave them one consistent strategy across both jurisdictions.

The Outcome

Today, Claire and Marcelle are settled in Montreal. 

Their daughter is thriving at her new school, and both parents are working and happy to be back home. They purchased a condo, and we continue to manage their investments and monitor their green card status to ensure any future steps are taken at the right time.

They’ve expressed how relieved and grateful they are to have had professional guidance through such a complicated process. For them, it wasn’t just about financial logistics.

Instead, it was about peace of mind and being able to focus on their family’s next chapter.

*The case studies and client examples presented on this website are for informational purposes only. Names and identifying details have been changed to protect client confidentiality. These examples are based on real scenarios but do not constitute financial advice. Individual circumstances vary, and you should consult a qualified financial advisor before making any financial decisions.