US estate tax for Canadians, the deemed disposition at death, inheritances and gifts across the border, Canadian trusts with US beneficiaries, executors, wills, and joint ownership.
33 guides, each written by a CPA licensed in the US and Canada.
Canada now requires T3 filings for bare trusts worth over $50,000. Here's who has to file, what the penalties are, and how US persons get caught twice.
Cross-BorderWhen a Canadian trust has a US beneficiary. When all parties are Canadian residents, these trusts work as designed. Covers treaty provisions, foreign tax.
Cross-BorderThe US imposes estate tax on worldwide assets of US persons and on US-situs assets of non-residents. Canada taxes gains at death through deemed.
Cross-BorderWhen a person with assets in both Canada and the US dies, two countries can tax the same estate. Canada taxes deemed dispositions; the US taxes the estate.
Cross-BorderEstate freezes, alter-ego trusts, and joint partner trusts are Canadian tools that collide with US estate tax, gift tax, and foreign trust rules.
Cross-BorderThe US imposes a gift tax on the donor. Canada and the US handle gifts in fundamentally different ways. Canada has no gift tax.
Cross-BorderCanada taxes the gain via a deemed sale at death; the US taxes estate value over $15,000,000 in 2026, or over $60,000 of US assets for a Canadian.
Cross-BorderIf you live in one country and have tax obligations in the other, a single power of attorney won't cover you. The reverse is equally true.
Cross-BorderA trust with connections to both Canada and the US faces dual taxation, complex reporting, and treaty provisions that often do not resolve the overlap.
Cross-BorderCanada taxes a deemed disposition at death. The US imposes estate tax on worldwide assets (or US-situs assets for non-residents).
Cross-BorderThe short answer: the estate pays, not the children, unless the children received assets from the estate before the tax debt was settled.
Cross-BorderIf you own property in both countries, a single will can work, but two wills (one per jurisdiction) is usually better. Covers treaty provisions, foreign.
Cross-BorderNo, it's not taxable income. But once a gift or inheritance from a Canadian parent tops $100,000 in a year, Form 3520 is required.
Cross-BorderIf you're the executor (or liquidator, in Quebec) of a cross-border estate, you've inherited a job with personal financial risk.
Canadian TaxA family trust in Canada is a type of personal (inter vivos) trust created during the settlor's lifetime, typically to hold assets for the benefit.
Cross-BorderA Canadian dies owning a Florida condo and a brokerage account holding US shares. Nine months later the IRS expects a return.
Cross-BorderUsually no. The treaty replaces the $60,000 default with a pro-rata share of the full US exclusion, but you must file Form 706-NA to claim it.
Cross-BorderCanada includes the full distribution in your income and gives you a foreign tax credit for the US withholding. Covers treaty provisions, foreign tax.
Canadian TaxCanada has no inheritance tax, but the deceased's terminal return owes tax on deemed capital gains at death. Provinces charge probate fees.
Canadian TaxCanada has no gift tax, but gifting property like stocks or real estate triggers a deemed disposition at fair market value.
Cross-BorderThe tax consequences aren't simple at all, and they get worse when one of those names belongs to a US citizen or green card holder.
Cross-BorderLife insurance is one of those things that works beautifully in one country and then falls apart when you add the other country's tax rules.
Cross-BorderWithout a QDOT, the marital deduction does not apply to a non-citizen spouse, and estate tax can hit at the first death.
Canadian TaxOntario's estate administration tax charges 1.5% on every dollar of estate value above $50,000. On a $2 million estate. Covers key rules, filing.
Canadian TaxThen, when the estate redeems or sells those shares back to the corporation, subsection 84(2) converts the redemption proceeds into a deemed dividend.
Canadian TaxCanadian trust law and tax law treat revocable and irrevocable trusts very differently, and the distinction matters more here than in the US. In the US.
Cross-BorderA Canadian RRSP or RRIF that was tax-deferred for decades becomes fully taxable when the holder dies. If the beneficiary is a US person (citizen.
Cross-BorderA Canadian spousal trust lets you transfer property to a trust for your spouse's benefit without triggering an immediate tax bill.
Cross-BorderA testamentary trust is any trust that arises on (and because of) a person's death, typically created by a will. Covers key rules, filing requirements,.
Cross-BorderThe US imposes estate tax on US-situs assets of non-resident aliens. Canadians who own US property get a prorated unified credit under Article XXIX-B.
Cross-BorderUS real property is a US-situs asset for estate tax purposes, and the $60,000 NRA exemption covers almost nothing. Covers treaty provisions, foreign tax.
Cross-BorderA US citizen or green card holder as trustee can change a Canadian trust's US classification, trigger annual reporting. Covers treaty provisions, foreign.
Cross-BorderWhen a US person inherits from a Canadian estate, the Canadian estate pays tax on deemed disposition gains. The US heir faces Form 3520 and FBAR.