Exact Steps to Take If You’re Moving from the USA to Canada

Video Script

In this video, I'm going to walk you through the exact steps to take if you're planning a move from the United States to Canada.

Stay to the end for an easy action item that almost everyone overlooks before they cross the border.

I’m Tiffany Woodfield, a Cross-Border Financial Advisor and the co-founder of SWAN Wealth Management.

I work with US and Canadian clients every day, and I've seen how much stress a cross-border move can cause families with significant wealth on both sides of the border.

If you're moving to enjoy your next adventure, the last thing you want is to arrive with a financial mess on your hands.

So let’s get into it!

1 - Create Your Vision for the Move

Before you do anything else, think about when you'd like to move.

You don't need an exact date. But look for life events that might anchor your timeline.

Some examples include:

• When you want to retire

• When your kids finish school

• A gap before you qualify for Medicare

These things affect the timing of your financial decisions and can help you get clear on your move date.

2 - Reframe the Problem

Most people moving to Canada think they just have a tax problem. But they don't. They have a financial planning problem.

When you move to Canada, taxes are just one piece of the puzzle. You also need a plan for your investments, estate, and immigration status.

And these four things can’t be solved in a one-off meeting with an accountant.

3 - Work with a Cross-Border Financial Advisor Early

Don’t wait until you have a move date to put together your team. Some of the highest leverage planning can happen 2-3 years before you move.

Start working with a cross-border team the moment you know Canada is a real possibility for you.

Why?

There are three main reasons:

ONE - A cross-border financial advisor can work with you while you’re still a US resident. This allows you to take advantage of investment planning opportunities before you move.

TWO - They’ll build a financial plan that shows you what your life will look like in Canada based on when you move and how you handle your finances.

THREE - You’re no longer alone. They’ll guide you through the process. And they’ll let you know when to bring in other professionals, such as a lawyer or accountant.

4 - Review Your Investments and Key Financial Events

Next, you need to review your investment accounts, retirement accounts, and all upcoming financial events.

This includes things like vesting Restricted Stock Units, bonuses, or selling a business.

Depending on when you move, these events can have very different tax outcomes.

If you own a US LLC or a trust, you need to understand the Canadian tax implications of these entities as well.

5 - Look at Your US Property

If you own a property in the United States, you'll need to think carefully about what to do with it.

For example, as a Canadian resident, holding your US property in a trust can create significant tax and reporting complexities in Canada.

If you decide to sell your home after moving to Canada, you should assess the capital gains tax in both the US and Canada. Then you can create a plan.

6 - Consult an Immigration Lawyer

The immigration processes can take 6-12 months if you are not a Canadian citizen. So don’t leave this to the last minute.

If you’re planning on expatriating or giving up your green card, seek advice from more than one expert.

This should include an immigration lawyer and cross-border tax accountant.

Keep in mind that you don’t necessarily need to expatriate.

It’s possible to maintain your US citizenship and optimize your finances, even if you’re retiring to Canada.

Next, before you move, find out what you need to do to properly sever residential ties in your state. If you skip this step, you could owe state taxes even after you’ve left.

An immigration lawyer can guide you on what to do in your situation.

Bonus Tip!

Before you leave the US, get a printed copy of your driving history from your state's DMV. Also be sure to get a letter from your US insurance provider.

When you apply for a Canadian driver's license and car insurance, that history qualifies you for much better insurance rates. Without it, you may be treated as a brand-new driver, which will mean spending more on car insurance every year.