Bird Talk Dear Bird Talk, My insurance agent is telling me that I need extra coverage if I drive my car to Florida for the winter. They say that any vehicle staying in the U.S. for more than 30 days requires special coverage. Is this correct? Brian Trenholm Fredericton, NB Ed.: That depends on the insurance company which you are working with. Many insurers have surcharges and time limits regarding how long your car can be in the U.S. Taking your car to the United States is considered a “material change in risk” and the insurer then has the right to deny your claim. You must tell your insurer or broker that you are going away for an extended period! This is why the CSA endorses the CSA Auto/Home insurance program that does not surcharge snowbirds for taking their Canadian vehicles to the United States for up to six months. Dear Bird Talk, With the elimination of the annual vehicle licence fee, many Ontarians registered online and received acceptance of registration in a confirming email, but nothing to attach to our vehicle or ownership as in the past. Is this confirmation an acceptable form of proof in another province or state that our vehicle registration is up to date? Can we remove existing stickers so as not to draw attention to those reading 2022? Brian Sandkey Blue Mountains, ON Ed.: Yes, we recommend removing your “expired” licence plate tags. You can use a razor blade and some “goo gone” or WD40 to help remove the residue. You can obtain a document confirming that you have renewed your licence plates from Service Ontario, but you have to go to a location in person. Dear Bird Talk, If my passport expires on September 15, 2023 and I will be in Florida from December 1, 2022 until April 15, 2023, do I need to renew my passport before I leave? Would the six-month rule impact this? Robin Fillingham The Blue Mountains, ON Ed.: No, you are entering the United States with a passport that is valid for the next six months. So you are good to go. You may be refused entry if your passport will expire within six months from your date of entry. Dear Bird Talk, My wife and I are thinking of selling our property in Florida and would like to know the steps in the process. I assume that we would go through a lawyer when it sells, but are there any U.S. taxes and/or fees which we would need to pay?We have heard conflicting stories from others who have sold. Thanks for clarifying this issue. David Trainor Upper Coverdale, NB Ed.: Assuming that the property is real estate (not a manufactured home) and that the sale would be through a real estate agent, the paperwork and money handling would be by a title company. In Florida, the seller must guarantee good title to the buyer, and the seller does this by purchasing a policy of title insurance through a title company. Costs involved would be the real estate commission, and the “closing costs” referred to in the sale agreement – which would include the price of the title insurance and the title company fees. If the sale would generate a profit, capital gains tax would be payable. Gain or not, 15% of the sale price would be sent by the title company to the IRS (unless the property qualifies for an exemption) and, in the year following the sale year, a U.S. tax return has to be filed. In that return, claim can be made for refund of any amount in excess of any tax payable. A lawyer’s involvement would be minimal, to review the sale agreement and guide you through the process. Dear Bird Talk, Hi, we own a condominium in Florida that we use for five months a year. Can I have a car’s civil responsibility (more than two million) for a Canadian car that I will leave in Florida all year around. I will be using the car for less than six months a year and it will be in storage for the rest of the time. Chantal Gilbert Ste-Julie, QC Ed.: Under federal law, you cannot leave your Canadian registered vehicle in the United States for longer than 12 consecutive months. If so, then you are considered to have imported the car to the U.S. but did not declare it. That could get very messy and expensive. Your Canadian insurance coverage will not be valid either. Dear Bird Talk, I would like to address your response to Jeff fromCalgary regarding a U.S. will. We were also in the process of updating our wills and our lawyer recommended that we have a U.S. will. You talked about how assets held jointly would pass by succession, however, if something happens to both owners, then it can get messy. We decided to enlist the services of an attorney in Arizona and draft both a U.S. will and a Power of Attorney. While our Canadian will does specify who will inherit our U.S. property, it was recommended that we attach a list of beneficiaries to all of the titles that we have, such as house, vehicles, golf carts, etc. I believe that the cost was under $2,000. Thank you for all that you do on our behalf. Wayne Carley Carnduff, SK Ed.: Good advice! Local governments understand local legal documents drafted by local legal counsel. Better safe than sorry. 8 | www.snowbirds.org
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