Flocking to the Southern U.S. This Winter? What Canadian Snowbirds Need to Know Before They Leave

Flocking to the Southern U.S. This Winter? What Canadian Snowbirds Need to 
Know Before They Leave 
TORONTO, Oct. 16, 2012 /CNW/ - Before heading off to the southern U.S. this 
winter for a long stay, RBC Wealth Management has advice for Canadian 
snowbirds to ensure they take all U.S. tax and estate issues into account. 
Failing to adhere to applicable U.S. laws may have serious implications if not 
followed carefully. 
"Canadians who spend more than four months in the U.S. every year should file 
a U.S. tax form each year to avoid being deemed a U.S. resident for tax 
purposes," said Prashant Patel, vice-president, RBC Wealth Management. "In 
addition, Canadians who own U.S. real estate should consider if U.S. estate 
tax or state probate tax will affect them. We can help them with strategies 
that can be employed to minimize the impact, if any. It is important to 
consult with a qualified U.S. tax advisor to discuss all these issues." 
Canadian snowbirds should also make sure their affairs are in order well 
before they plan their trip. For example, any Power of Attorney would need to 
be valid in the U.S. as well as in Canada. In addition, if a Canadian 
personally owns U.S. real estate at the time of their death, their estate 
could be subject to U.S. estate taxes based on the market value of their U.S. 
real estate. 
"After 2012, the maximum U.S. estate tax rate is scheduled to increase to 55 
per cent and the value of a Canadian's worldwide estate need only exceed US$1 
million to expose them to U.S. estate tax on their U.S. assets," added Patel. 
RBC has a U.S. subsidiary, RBC Bank (Georgia), N.A. ("RBC Bank"), that 
specializes in meeting the needs of Canadian snowbirds while they vacation in 
the U.S. 
"Our understanding of the cross-border lifestyle allows us to build strong 
relationships and seamlessly manage clients' banking needs, especially during 
this important planning stage as they prepare to travel to the U.S. for the 
winter," said Alain Forget, director, Sales and Business Development, RBC 
Bank. "We have a steadfast commitment to serving our clients and no other 
financial institution offers our level of tailored cross-border capabilities." 
Aside from tax and estate issues, RBC Bank has compiled a comprehensive, 
easy-to-follow checklist of other items snowbirds should consider, including: 

    --  Identify the most convenient ATM locations where you will be
        able to withdraw funds from your U.S.-based account.
    --  Contact your mobile phone service provider to add international
        roaming to your plan or secure a pre-paid phone to be used in
        the U.S. only.
    --  Don't forget to pack your passport, health insurance cards, RBC
        Bank Visa debit card and the new
        RBC Bank Visa Signature Black credit card,
        which offers cross-border benefits ranging from reward
        opportunities to travel insurance and even lower foreign
        exchange fees.

About RBC Wealth Management
RBC Wealth Management is one of the world's top 10 largest wealth managers. 
RBC Wealth Management directly serves affluent, high-net-worth and ultra high 
net worth clients in Canada, the United States, Latin America, Europe, the 
Middle East, Africa and Asia with a full suite of banking, investment, trust 
and other wealth management solutions. The business also provides asset 
management products and services directly and through RBC and third-party 
distributors to institutional and individual clients, through its RBC Global 
Asset Management business (which includes BlueBay Asset Management). RBC 
Wealth Management has more than C$562 billion of assets under administration, 
more than C$324 billion of assets under management and approximately 4,300 
financial consultants, advisors, private bankers and trust officers.

RBC Bank has cross-bordercapabilities which deliver an integrated online 
banking capability, known as RBC Access USA, where RBC accounts can be viewed 
and transacted on both sides of the border. RBC Access USA enables real-time, 
dual currency transfer of funds between U.S. and Canadian accounts, real-time 
balance updates and bill pay in either country.RBC Bank serves clients in 
the U.S. through a variety of channels including online, mail, ATM, in-market 
relationship bankers and a 24/7 support contact center. RBC Bank clients can 
also make deposits through smartphones and personal scanners (Remote Deposit 
Capture), and they have unlimited access to all PNC Bank ATMs with no fees.

For additional information about RBC Bank and its cross-border services and 
expertise, please visit www.rbcbank.com or follow us on Twitter @RBCBank_US.

About RBC
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under 
the master brand name RBC. We are Canada's largest bank as measured by assets 
and market capitalization, and are among the largest banks in the world, based 
on market capitalization. We are one of North America's leading diversified 
financial services companies, and provide personal and commercial banking, 
wealth management services, insurance, corporate and investment banking and 
investor services on a global basis. We employ approximately 80,000 full- and 
part-time employees who serve more than 15 million personal, business, public 
sector and institutional clients through offices in Canada, the U.S. and 51 
other countries. For more information, please visit rbc.com.

Bev MacLean, RBC Corporate Communications, 416-974-9334


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CO: RBC Wealth Management
ST: Ontario

-0- Oct/16/2012 09:00 GMT

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