Tense Canada-U.S. relations have boosted business for cross-border financial advisors, but also made planning more difficult.wildpixel/iStockPhoto / Getty Images
All advisors have been navigating rapid policy shifts since U.S. President Donald Trump took office, but those who specialize in cross-border planning have been especially affected by the changing Canada–U.S. relationship and heightened emotions on both sides of the border.
“We are the busiest we’ve ever been. I can confidently say that. And it hasn’t stopped since the U.S. election in November,” says Kris Rossignoli, cross-border tax and financial planner at Cardinal Point Capital Management ULC in New York.
Americans are reaching out for advice on moving to Canada, whether it’s for political reasons, a job opportunity or to be closer to family. Canadians are also moving to the U.S., attracted by lower taxes, higher pay, family ties and sometimes politics. Mr. Rossignoli says he’s worked with more Americans headed north than vice versa, but attributes much of that to the larger population south of the border.
Now that there’s more certainty following the passage of the One Big Beautiful Bill Act in the U.S., Mr. Rossignoli is fielding calls from business owners deciding where to expand. Lower tax rates and an increased qualified small business stock exemption are giving the U.S. a competitive edge, he says.
Meanwhile, tariffs are still causing uncertainty – something that’s wreaking havoc on cross-border business owners with global supply chains.
At the same time, as a Canadian who lives in New York on a work visa, Mr. Rossignoli is affected personally by heightened scrutiny at the Canada-U.S. border. On a recent trip to Toronto for work and a wedding, he made a point of booking his flight through Toronto Pearson Airport instead of the more convenient Billy Bishop Toronto City Airport because U.S. Customs and Border Protection issued his work visa from Pearson.
“I have not as yet had any issues, and I haven’t heard from clients who have had any issues either, [but] people are thinking about it a little more,” he says.
The frustration of planning for changing policies
Matt Altro, president and chief executive officer of MCA Cross Border Advisors Inc. in Montreal, spent months closely following a proposal that initially established a 5 per cent excise tax on any transfer out of the U.S. by a non-U.S. citizen. That would have translated into a significant cost to Canadian clients intending to move back to Canada.
“At some point, they’re going to repatriate that wealth to Canada, [including perhaps] a big U.S. retirement account or U.S. property,” he says. “We had to get in front of that and let clients know that this is happening.”
The downside was that some clients wanted to start taking action right away, even though it wasn’t known whether the tax would become law and, if it did, when it would take effect. So, after informing clients, his role included encouraging them to hold off on major changes until there was more clarity.
In the end, as new iterations of the legislation emerged, the excise tax dropped to 1 per cent with a much narrower group of transfers targeted. His clients didn’t end up being affected at all.
“It’s a risky situation to act before something becomes a law,” he says. “[There’s] a lot of bluster and where is it going? We’ve just got to buckle up and continue to ride this wave [until] it gets more clear.”
Carson Hamill, associate portfolio manager with Snowbirds Wealth Management at Raymond James Ltd. in Coquitlam, B.C., says the erratic nature of U.S. policy is creating a lot of “noise” and undercutting the U.S. administration’s credibility – but that doesn’t mean advisors can ignore new announcements.
“We have the fiduciary duty to put [clients] in the best situation possible,” he says. “We have to educate ourselves on whatever’s being put forth and roll with the punches.”
Strong emotions demand empathy and professionalism
The political environment has inspired strong emotions as people aligned themselves with one viewpoint or another – something that’s further complicating the work of advisors who work with people on both sides of the border and may fall anywhere along the political spectrum.
“Sometimes, we can empathize or sympathize, and other times, we remain more objective and neutral,” Mr. Altro says. “There can be moments where you feel a client is strong one way, and you might not feel the same way. How to handle it comes with experience.”
Mr. Hamill agrees that the temperature of client emotions is running hotter than in more common challenges, such as market downturns.
“This has a different feel to it. … People seem angry and fed up,” he says. “It’s about talking them off the ledge and putting things in perspective.”
Mr. Hamill says it’s important to hear what clients are saying, educate them on the consequences of whatever decision they’re contemplating and, when appropriate, reassure them that the situation may not be as bad as it seems and that the current U.S. administration is most likely time-limited. Sometimes, the best choice is simply to stay the course.