Financial advisors may find themselves coming across clients with either assets or family members in another country more often in future. According to a recent study by BMO Harris Private Banking, 26% of Canadians have either family members or assets outside of Canada.
“Financial advisors are probably looking at a growing trend in Canada,” says Sara Plant, vice president and national director, BMO Harris Private Banking in Toronto. “So when they’re speaking to their clients, they should bring it to [the clients’] attention that there could be some additional rules that they should be aware of if [they] have assets or family members overseas.”
Specifically, the study found that 19% of Canadians have financial assets overseas, such as a vacation home, bank account, investments or business holdings. However, over a third of those Canadians are unfamiliar with the taxes and laws regarding wills that include international assets or properties.
As well, according to the study, 16% of Canadians have named or will name family members who live in another country as beneficiaries. For clients with global ties, the key is communication, says Plant. Advisors should encourage clients to talk with family members in other countries about their estate plans, she says. As well, advisors should recommend that clients seek advice from other professionals a little closer, literally, to the issue.
“[Advisors should] give the clients a heads up,” she says, “that maybe they should be seeking advice in the country where the family members are or the assets are.”