Revocable trusts are fairly common estate planning tools for U.S. persons who live in the U.S...So what happens when someone who maintains a U.S. revocable trust moves to Canada? If the soon-to-be Canuck is the trustee of the U.S. revocable trust, the Canada Revenue Agency (CRA) will consider the trust a Canadian resident for tax purposes and treat the trust as a separate entity from the grantor...This difference in tax treatment creates the potential for double taxation, taxation that often cannot be fully offset using foreign tax credits, as well as onerous and costly tax filing obligations.

Our cross-border clients will be happy to hear that on January 5^th, 2025, the bill to repeal WEP was signed into law. This means that those individuals affected by WEP may receive additional Social Security benefits. Better yet, the bill is retroactive back to benefits received in January 2024.

The Steele Wealth Management team are specialists at maximizing retirement income for all our clients, and we are happy to see elimination of WEP with more money in the pockets of our cross-border clients! While WEP repeal simplifies retirement income planning, there is still plenty of planning to do to maximize income in retirement!

This edition of Wealth Without Borders discusses the elimination of the WEP. Read about the possibility that it will be repealed. We also examine tax and financial planning moves to help prepare you for the upcoming tax season if you are obligated to file a US tax return. Have you thought about 2024 tax planning? Read about actionable strategies to consider before year-end deadlines while considering your cross-border situation: your Canadian Investments integrated with your US investments. Plan a meeting with Steele Wealth Management to examine nuances and changes that could impact your typical year-end planning.