When you travel, the last thing you want to worry about is finances. But if your finances aren’t in order before you leave Canada, you could return to a money mess.
It’s important that those leaving the country for an extended vacation make appropriate arrangements, including and especially snowbirds who split their retirement between Canada and the southern U.S. and further south.
Here are some issues to discuss before making your next trip:
• Health insurance: Make sure you have adequate out-of-country health insurance coverage. If you run into a medical emergency, you can run up massive debts without insurance coverage. Be sure you are familiar with the terms of your policy – particularly the sections concerning existing medical conditions, which may not be covered.
• Wills and Powers of Attorney: Your will should be up to date so that all of your bases are covered. If you have assets outside Canada, your will should be reviewed to ensure these assets are properly dealt with. There may be planning opportunities to take advantage of. This is especially important since a death in a foreign country can complicate estate issues.
Your relatives or executor should know where to find your will.
Your power of attorney must also be current. Through a power of attorney, you designate someone to make financial decisions for you should you become incapacitated. If necessary, you can appoint someone you trust to manage your domestic finances while you are away or out of reach.
• Manage your investments: Make arrangements in advance to deal with term investments that might come due in your absence, such as Guaranteed Investment Certificates (GICs). If you have mutual funds or securities in your portfolio, speak to your financial advisor about how to best handle them while you’re away. If you have a computer, you may be able to manage most of your finances via the internet. Check with your financial institution.
• Income taxes. Unfortunately, you can’t take a holiday from the taxman. Make arrangements to file your yearly income-tax return if you are absent at the end of April. If required, make sure quarterly income-tax payments are made in your absence.
• Pay bills: Pay outstanding bills before you leave, and make arrangements to have those that arrive in your absence paid. Again, you may be able to take care of these through internet banking.
Other details to take care of include obtaining a duplicate ATM card in case your original is lost or stops working; and investigating other means of obtaining cash such as a U.S.-dollar money-market account that carries chequing privileges.