Estate Planning for Snowbirds: Protecting Your Assets While Living Abroad
If you’re one of the many Canadians who enjoy escaping the harsh winter weather by spending part of the year in warmer climates, you’re likely familiar with the term “snowbird.” Snowbirds are individuals who travel south during the winter months, often spending several months in the United States or other countries. While spending time abroad can be an exciting and enjoyable experience, it’s important to remember the importance of estate planning, especially if you own assets in both Canada and your destination country.
In this blog post, we’ll discuss some of the key considerations for snowbirds when it comes to estate planning. Whether you’re a retiree who spends several months each year in Florida, Arizona, or Mexico, or you’re a business owner who frequently travels to the United States for work, proper estate planning can help protect your assets and ensure that your wishes are carried out.
- Create a Will
Regardless of your age or financial situation, creating a will is an essential component of estate planning. A will is a legal document that outlines your wishes regarding the distribution of your assets after your death. Without a will, your assets will be distributed according to the laws of the province in which you reside, which may not align with your wishes.
If you own property in both Canada and the United States, it’s important to create separate wills for each country. This is because estate planning laws differ between countries, and what may be permissible in one country may not be in another. A qualified estate planning attorney can help you navigate these differences and ensure that your wishes are carried out.
- Consider Trusts
If you own property or other assets in the United States, it may be beneficial to consider creating a trust. A trust is a legal entity that can hold assets on your behalf, and can be structured in a way that allows you to transfer assets to your beneficiaries while minimizing taxes and other fees.
There are several types of trusts to consider, including revocable trusts, irrevocable trusts, and living trusts. A qualified estate planning attorney can help you determine which type of trust is best suited for your needs.
- Review Your Insurance Coverage
If you’re spending an extended period of time abroad, it’s important to review your insurance coverage to ensure that you’re adequately protected. This includes reviewing your health insurance coverage, as well as your homeowners or renters insurance.
You may also want to consider purchasing travel insurance, which can provide coverage for medical emergencies, trip cancellations, and other unexpected events. Be sure to read the fine print carefully and understand the terms and conditions of any insurance policy you purchase.
- Plan for Incapacity
In addition to planning for your assets after your death, it’s also important to plan for the possibility of incapacity. This includes creating a power of attorney, which designates someone to make decisions on your behalf if you’re unable to do so.
If you own property in both Canada and the United States, it’s important to create separate powers of attorney for each country. This is because the laws governing powers of attorney may differ between countries.
- Consult with a Qualified Estate Planning Attorney
Finally, it’s important to consult with a qualified estate planning attorney who has experience working with clients who spend time abroad. A qualified attorney can help you navigate the complexities of estate planning laws and regulations, and ensure that your wishes are carried out.
If you’re a snowbird who spends time in both Canada and the United States, proper estate planning is essential to protect your assets and ensure that your wishes are carried out.