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Title: Cardinal Point Wealth Management Identifies Potentially Costly Tax Issues for Former U.S. Citizens and Green Card Holders in Canada

United States, 19th Dec 2025 – Cardinal Point Wealth Management has released an advisory for former U.S. citizens and long-term green card holders now residing in Canada, highlighting the complex U.S. tax issues that can continue after expatriation.While giving up U.S. citizenship or residency ends worldwide taxation, it does not always mean a complete break. Exit taxes, estate exposure, and ongoing reporting requirement can persist for years. The firm’s 2025 guidance points out common pitfalls and key planning opportunities for those navigating life in Canada after becoming U.S. expatriates..“Many people believe that renouncing citizenship severs all ties to U.S. tax law,” explains Kris Rossignoli, Senior Private Wealth Manager at Cardinal Point Wealth Management. “But the U.S. system reaches far beyond its borders. Former citizens must still manage residual estate tax exposure, retirement accounts, and the risk of double taxation.”Expatriation and Covered StatusUnder U.S. tax law (IRC §877A), expatriation occurs when a U.S. citizen renounces citizenship or a long-term green card holder (who was a resident at least 8 of the past 15 years) abandons that status.Those who meet the covered expatriate definition face exit taxes and transfer penalties. In 2025, to avoid covered status, an individual must:Have a net worth below USD $2 million.Average annual U.S. tax liability under USD $206,000 for the prior five years.Certify full tax compliance via Form 8854.Failing any one of those tests results in covered status, triggering deemed asset sales, taxation on pensions, and potential 40% taxes on gifts or inheritances to U.S. persons.Estate and Gift ExposureAfter expatriation, former citizens are treated as non-resident, non-citizens (NRNCs) for U.S. estate purposes. They are...

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