Wealth without Borders
The purpose of this quarterly newsletter is to share cross-border wealth management news and insights with our cross border clients and colleagues.
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.
