Succession and Ownership of U.S. Assets by Canadians | FAQ

Frequently Asked Questions

• What is the U.S. estate tax?

  The U.S. estate tax is a tax that is payable by non-residents of the U.S. who own property in the U.S. at death. This estate tax is calculated on the fair market value of property located in the U.S. at the time of death.

  Canadian residents are entitled to a tax credit that reduces or eliminates this tax. It is calculated based on the total value of the estate at the date of death, among other things.

• If at the time of my death I own real estate in Florida valued at US$1,000,000, do I have to pay the U.S. estate tax?

  For the year 2025, if the value of your worldwide estate is less than $13,990,000, no estate tax is payable upon death. However, if the value of your worldwide estate is greater than this amount, you should consult a tax advisor from Raymond Chabot Grant Thornton.

• In addition to real estate in the U.S., are any other assets subject to U.S. estate tax?

  Apart from real estate in the U.S., the most frequent queries we receive are in relation to personally-owned shares in U.S. corporations held in Canadian registered accounts such as RRSPs. These shares are considered to be located in the United States.

• If at the time of my death, I own an asset in the U.S. but no estate tax is payable, do any U.S. tax forms still have to be filed?

  Yes. The requirement to file form 706-NA is mandatory if, at the time of your death, you own property in the U.S. valued at over US$60,000.

• What is the best way to own real estate in the U.S. (condo/house)?

  It all depends on the facts at hand, and as such, each case must be assessed individually. Drawing up an effective plan in order to avoid an estate settlement in the U.S. could be worthwhile. You should always consult your tax advisoer before buying property in the U.S.

• I have a bank account at a U.S. bank. Do I have to plan anything in particular?

  Bank accounts in U.S. financial institutions are not subject to U.S. estate tax unless the bank account is used for business purposes.

  Furthermore, it might be a good idea to complete a Pay on Death Agreement and name your potential beneficiaries upon death. Each financial institution has a specific form for this purpose. However, it is important that your Québec will designates the same beneficiaries.

• Should I prepare a protection mandate or power of attorney if I own real estate in the U.S.?

  A Québec protection mandate is not recognized in the U.S. Therefore, having a Durable Power of Attorney which is recognized in the U.S. State where the real estate is located can be an interesting option.

• Should I amend my Canadian will if I own real estate in the U.S.?

  In some cases it would be preferable to have a specific, English-language will for that property. Such a specific will could make it easier to transfer the property to the heirs at the time of death.