Cross Border U.S.-Canadian Tax and Estate Planning

The long Canada-U.S. border and extensive ties between the two countries provide a significant amount of economic migration for residents of both countries. Many U.S. citizens and permanent residents have property interests in Canada and vice-versa in the case of residents of Canada for tax purposes with property interests in the U.S. Estate planning counsel and advisers must identify the tax and wealth transfer planning rules and opportunities specific to U.S. citizens and Canadian residents with assets, presence and family members in both countries.

The differences between U.S. and Canadian estate and wealth transfer rules present several challenges. Canada does not impose an estate tax. However, Canadian law provides for a "deemed disposition" of all capital assets on the death of a taxpayer, thus triggering a tax on all unrecognized gains and losses.

While the U.S.-Canada tax treaty allows for reciprocal credits for U.S. federal estate tax and Canadian taxes, estate planners must reconcile the differences between the two countries' tax regimes and proactively minimize the tax impact of wealth transfers. Tax advisers must thoroughly grasp treaty provisions, identify whether a client needs separate estate documents specific to each country, and recognize the U.S. and foreign income and estate/gift tax implications of transactions.

Listen as our expert panel advises how to plan clients' estates with U.S. and Canadian tax presence, including interests in business entities, real estate, and financial accounts. The panel will cover the legal and tax considerations when planning for the disposition of each type of asset.

1. U.S. estate tax regime
2. Canadian "deemed disposition" rules
3. Tax treaty credit provisions
4. U.S. and Canadian tax treatment of trusts
5. Filing and reporting deadlines and timelines to consider

The panel will review these and other essential issues:

• When is it appropriate for clients to have separate estate plan documents specific to the U.S. and Canada?
• How does the "deemed disposition" rule work to create a recognition event upon death in Canada?
• What tax treaty provisions minimize dual taxation issues in estates and post-mortem tax events?
• How to avoid inadvertent gift tax triggering events on spousal transfers
• Options for transferring estate assets outside of an estate in Canada

EDIT ME

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience at mid-level within the organization, drafting wills and trust documents, supervising other attorneys or estate planners. Specific knowledge of concepts regarding taxation of foreign investments held by U.S. taxpayers; familiarity with tax treaty provisions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).