It’s not too often that an article on snowbirding in the United States takes a sentence to remind Canadians of a certain age to be mindful of their assets in terms of taxes and estates, but an article in today’s National Post does just that very thing.
Too often Canadian retirees are enticed south of the border with misinformation that can land them, or their heirs, in US tax hell, and I wouldn’t say that the following advice is the most strongly worded I’ve seen, but it’s good practical advice anyway.
A snowbird making a habit of spending several months a year in Florida or another U.S. state needs to take legal advice on consequences of the U.S. residence and may trigger the U.S. significant presence test for tax liability and questions of permanent domicile.
While there is no mention of banking or investing issues to be aware and wary of, reminding folks that the US government has different ideas about residence for tax purposes that can have an impact on their wills and their estates is as good a place to start as any.
And just for comparison purposes. I stumbled on the reverse situation via a WSJ article that was linked on the Americans in Canada Facebook page.