What to Do as a U.S. Individual Inheriting Canadian Dollars

Written by Carson Hamill CIM®, CRPC®, Associate Portfolio Manager and Assistant Branch Manager & Dean Moro BComm, CIM®, Associate Portfolio Manager

Inheriting money can be a bittersweet experience, often accompanied by a mix of emotions. When that inheritance involves Canadian dollars (CAD) and you reside in the United States, you might find yourself faced with a unique set of financial considerations. In this post, we'll explore what you should do as a U.S. person inheriting Canadian dollars.

• Understanding the CAD Exchange Rate
• Using Raymond James (USA) Ltd. (RJLU) for CAD Holdings
• Steps to Take

Understanding the CAD Exchange Rate

One of the first things to consider when inheriting CAD as a U.S. resident is the current exchange rate. The value of the Canadian dollar can fluctuate, sometimes making it more or less favourable to convert your CAD to U.S. dollars (USD). It's essential to keep an eye on the exchange rate trends.

Currently, the CAD may be weaker against the USD. A weaker CAD means that each Canadian dollar is worth less in U.S. dollars. While this might not be ideal for immediate conversion, it's crucial to remember that exchange rates can change over time. Sometimes, it's worth holding onto CAD and waiting for a more favourable rate.

Using Raymond James (USA) Ltd. (RJLU) for CAD Holdings

One significant advantage you have as a U.S. person inheriting CAD is the ability to hold these funds with a reputable financial institution like Raymond James (USA) Ltd. (RJLU). Here's why this can make your financial life easier:

Timing: By holding CAD with RJLU, you have the flexibility to choose when you want to convert your CAD to USD. This means you can wait for a more favorable exchange rate if the CAD strengthens in the future.

Professional Guidance: Raymond James (USA) Ltd. (RJLU). can provide you with expert guidance on managing your CAD holdings. They can help you make informed decisions about when to convert your CAD to maximize your inheritance's value. You can learn more here about the benefits of working with an experienced cross border financial advisor.

Diversification: Holding CAD with a reputable financial institution allows you to diversify your currency holdings. This can be a smart strategy for managing currency risk.

Steps to Take

Here are some steps you can consider when inheriting Canadian dollars as a U.S. resident:

Consult with Financial Advisors: Seek advice from financial professionals who specialize in cross-border financial planning. They can help you understand the implications and guide you on the best strategies for managing your inheritance. You can learn more here about the benefits of working with an experienced cross border financial advisor.

Monitor Exchange Rates: Keep an eye on the CAD to USD exchange rates. Consider consulting with currency experts to make informed decisions about when to convert your CAD.

Create a Financial Plan: Work with your financial advisor to create a plan for your inherited CAD. This plan should align with your financial goals and consider your risk tolerance.

Stay Informed: Stay informed about the Canadian and U.S. economies and geopolitical events that could affect exchange rates.

Summary

Inheriting Canadian dollars as a U.S. person can present unique financial opportunities and challenges. By working with professionals, monitoring exchange rates, and using the services of institutions like Raymond James (USA) Ltd. (RJLU), you can make the most of your inheritance and ensure it aligns with your long-term financial goals. Remember, patience and informed decision-making can be your best allies in managing your inherited CAD.

Next Steps

If you’re planning on moving to Canada and need assistance with your investments, estate planning, and portfolio management, please call or email Snowbirds Wealth Management, as we specialize in cross-border financial planning and wealth management. We work closely with experienced cross-border lawyers and accountants to ensure you have a qualified team behind you.

About Snowbirds Wealth Management

Gerry Scott is a Portfolio Manager and founder of Snowbirds Wealth Management, an advisory firm focussed on the cross-border market. Together with Dean Moro and Carson Hamill, Associate Portfolio Managers with Snowbirds Wealth Management, they provide investment solutions for Americans living in Canada and Canadians residing in the United States. Licensed in both Canada and the US, they provide tailored investment solutions to minimize the tax burden when moving assets across borders.

To schedule an introductory call, please click here.

Statistics and factual data and other information are from sources RJLU believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities nor is it meant to replace legal, accounting, taxation or other professional advice. We are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The information is furnished on the basis and understanding that RJLU is to be under no liability whatsoever in respect thereof.

Raymond James (USA) Ltd. advisors may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Investors outside the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Raymond James (USA) Ltd. is a member of FINRA/SIPC.