Foreign Assets in Estate Planning

Owning property or investments outside Canada is increasingly common, especially among Ontarians who have lived or worked abroad. While foreign assets can be valuable, they also bring added complexity when it comes to estate planning. Different countries have their own laws about inheritance, probate, and taxation, and those rules may not align with Ontario’s law. Without careful planning, foreign assets can cause significant delays, additional costs, and confusion for your executors and beneficiaries.

When you prepare an estate plan, it is important to consider how your foreign assets will be managed and distributed after death. That planning starts with understanding which laws apply and ensuring your Will and supporting documents are recognized in every country where you own property.

The Challenge of Multiple Jurisdictions

In estate planning, the location of your property matters. A single Ontario Will may not be enough to deal with assets in other countries. For example, a vacation home in the United States or an investment account in Europe may need to be administered under local rules before it can be released to your estate or beneficiaries.

In some cases, your Ontario Will must be “resealed” or formally recognized by a foreign court before the executor can act. In others, the foreign jurisdiction may require its own probate process entirely. These steps can take months or even years and often involve translation, notarization, or local legal assistance. Executors also face practical barriers such as currency conversion, foreign tax filings, and managing assets they cannot easily access.

Foreign assets also affect how your estate is valued and taxed in Ontario. Canada treats all capital property as sold at death, which can trigger taxable gains on worldwide assets. Coordinating multiple jurisdictions’ tax rules in advance helps avoid double taxation and ensures the proper reporting of foreign property. For a deeper look at how different types of assets are managed within Ontario estates, visit our related post on Estate Assets in Ontario.

Planning Ahead for Foreign Assets

One of the most effective strategies for Ontarians with property abroad is to prepare more than one Will. A separate Will can be made for assets located in another country, drafted in accordance with that country’s laws. This allows estate administration to proceed independently in each jurisdiction, avoiding unnecessary delays and reducing costs. When multiple Wills are used, they must be drafted carefully to ensure that neither cancels nor conflicts with the other.

Another key step is obtaining legal advice in Ontario and in the country where the asset is located. Coordination between professionals is essential to ensure that your Wills are consistent and that your estate plan reflects the legal and tax requirements of each jurisdiction. This is especially important in places with inheritance taxes, forced heirship rules, or unique title transfer procedures.

Foreign assets may also have tax implications in both countries. Your executor could be required to report foreign holdings or pay withholding taxes, and non-resident beneficiaries may owe foreign tax on what they receive. Working closely with an accountant and a financial advisor supports can prevent your estate from being burdened with unexpected liabilities.

Special Considerations for New Canadians

Many new Canadians maintain financial or property interests in their country of origin. These assets can include family homes, savings accounts, or business investments. Without a plan that addresses both jurisdictions, those assets can be difficult for family members to claim or administer.

For new Canadians, reviewing both your Ontario and foreign estate documents is essential. You may need to update Wills made before moving to Canada or confirm that a foreign Will does not revoke your Ontario one. It is also wise to confirm how each jurisdiction treats non-resident executors and beneficiaries, as rules differ widely around the world.

Estate planning for newcomers can also include practical steps such as keeping clear records of ownership, maintaining updated contact details for foreign advisors, and ensuring that your Ontario executor knows how to locate your documents. The more organized and transparent your records are, the easier it will be for your loved ones to navigate your estate later.

Cross-border estate planning requires thoughtful coordination between multiple legal systems and professionals. At E is for Estates, we help Ontarians identify whether a second Will or other planning strategy is needed, coordinate with foreign advisors when necessary, and prepare a plan that reflects Ontario law and the law of another jurisdiction.

Our goal is to make complex estate matters manageable. With the right advice and preparation, your foreign property and investments can be transferred efficiently and according to your wishes. Proper planning not only saves time and costs but also gives your loved ones peace of mind, knowing that everything has been addressed in advance.

BOILER PLATE: This article is intended for informational purposes only. For personalized advice tailored to your specific circumstance, please reach out to the E is for Estates team.

Erin L. Watson, B.A., JD

Lawyer & Notary Public

E is for Estates