Heading south this winter?
Saleem Tyab - Jan 24, 2019
Winter is the time of year when many Canadians plan their escapes from the cold and head to warm weather destinations. It is important to ensure your estate plan is in good order...
Winter is the time of year when many Canadians plan their escapes from the cold and head to warm weather destinations. While many planning efforts are focused on setting up tee times, updating travel insurance and protecting houses before leaving, one important consideration should be ensuring your estate plan is in good order.
If you are a snowbird, here is a short list sourced for you with some estate planning considerations to address before you leave for your warmer destination:
• Have a valid and updated will and powers of attorney. Those empowered by the documents should know where they are stored should something happen to you while you are away.
• Make sure you call your home insurance provider and let them know how long you’ll be away. To keep your home insurance active, make sure that someone will be checking on your home for damage or vandalism on at least a weekly basis.
• If you own property outside of Canada, you may need to seek legal advice to determine if you need a separate will and powers of attorney for that country. If so, ensure that your foreign will and powers of attorney are properly integrated with your Canadian documents.
• Consult an accountant to plan around any potential income or estate tax liabilities relating to the ownership of foreign property.
• Keep an updated list of all of the institutions where you have assets or that provide professional services to you (i.e., banks, accountants, lawyers, etc.) and a contact person at each company.
• Keep track of the number of days you spend away as you may be deemed a resident for tax purposes in another jurisdiction if you spend more than 182 days per calendar year outside of Canada.
• Pay attention to currency fluctuation. Consider buying US dollars when the Canadian dollar is strong. That gives you an opportunity to put money into your US dollar account and protect against future drops.
As always, we're here to help. If you are looking to purchase a home down south, please feel free to reach out to me discuss your plans and goals.