Many Canadians are flocking to the sunny warm south to enjoy a few months each year and escape the cold Canadian winter. Snowbirds who travel to the United States should be aware of the financial requirements that must be considered when deciding to head south.

Consider your basic banking needs while out of Canada. You may need to set up your Canadian bank account to accept automatic deposits and bill payments. You may also find restrictions on setting up a bank account in the US.

You will want to have a Power of Attorney drawn in the resident state dealing with any property you own in the US. A Canadian Power of Attorney may not be valid in the US.

Make sure you know the rules related to US taxation. If you spend too much time south, the US government can claim you as a taxable citizen. In addition, if you stay beyond the legal limit you may be considered as an illegal alien, and the consequences may be devastating.

You need someone here to keep in contact and ensure urgent mail is directed to you in a timely fashion. You would not want to miss an important deadline requesting information from Canada Customs and Revenue Agency or the Internal Revenue Service. You may also want to set a convenient method of contact. Using communication services like email or setting up a toll-free phone number has never been easier.

Make sure you review your health, home and auto insurance policies. Don't leave home without health insurance. It could be financial disaster if you have an accident or become ill and do not have adequate health insurance coverage while you are in the US. Many home insurance policies require someone check on your home while you are away. Your home insurance could be voided if this is not done. Finally, make sure you extend your auto insurance limits. Liability claims in the US could wipe you out financially.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.