Canada-US Estate Planning: A Complete Guide For Snowbirds And Cross-Border Families

If you split your year between Toronto and Tampa, own a condo in Florida, hold US investments, or have children who became American citizens, your estate plan needs to clear two systems at once. Canada has no estate tax but does have deemed disposition at death. The US has federal estate tax that can hit non-residents at very low thresholds. Without coordinated Canada–US estate planning, your family can end up paying tax twice on the same asset — or fighting through a Florida probate that freezes everything for nine to eighteen months.

This guide walks through what every snowbird and cross-border family needs to know about cross border estate planning, from US estate tax exposure to choosing the right ownership structure for that vacation property.

Why Canada–US Estate Planning Is Different

Most Canadian estate plans assume one tax regime: Canadian. Your will is probated in your home province, the deemed disposition triggers capital gains, and the estate moves through. Add a US asset — even a single vacation condo — and the picture changes immediately.

A non-resident of the US is subject to US estate tax on US-situs assets. That includes:

• US real estate (a Florida condo, an Arizona home, a New York co-op)
• Shares of US corporations held directly (including stocks held in a Canadian brokerage)
• Tangible personal property physically located in the US

The exemption for non-residents is not the same as the one US citizens enjoy. While a US citizen has a unified credit shielding millions, a Canadian resident gets a much smaller pro-rated exemption that depends on the size of their worldwide estate. The Canada–US Tax Treaty softens the blow, but it does not eliminate it — and you still have to file Form 706-NA to claim treaty relief.

The Big Risks Without a Cross-Border Plan

1. Double Taxation on Death

Canada applies deemed disposition at death, treating you as having sold every asset at fair market value. If that same asset is US-situs, the US may also impose estate tax. Coordinated planning by a cross border estate lawyer uses the Canada–US Tax Treaty’s foreign tax credit mechanism to avoid double taxation, but only when the structure is set up correctly before death.

2. Florida Probate Freezing Your Estate

If a Canadian dies owning Florida real estate in their personal name, the property must go through Florida ancillary probate. This is a separate court process from any Canadian probate, can take 9–18 months, and requires hiring Florida counsel. Until it concludes, the property cannot be sold, refinanced, or transferred. We cover this in more detail in our Florida Probate for Canadians guide.

3. The “Snowbird” Tax Residency Trap

Spending too many days in the US can accidentally make you a US tax resident under the Substantial Presence Test. That changes your worldwide tax filing obligations and your estate exposure. The fix is filing Form 8840 (the Closer Connection Statement) each year — but if you cross the day-count threshold, the form alone is not enough.

Core Tools in Canada–US Estate Planning

The Cross Border Trust

The Cross Border Trust is purpose-built for Canadians owning US real estate. Instead of holding the Florida condo personally, the property is held in a trust drafted to satisfy both Canadian attribution rules and US tax law. This structure can:

• Avoid US estate tax exposure on the property
• Avoid Florida ancillary probate entirely
• Preserve the principal residence treatment in Canada (when applicable)
• Allow controlled succession to your spouse and children

Read the full breakdown in The Cross Border Trust: Owning US Property the Canadian Way.

Cross-Border Wills

A single Canadian will is rarely enough once you own US assets. A properly coordinated cross-border estate plan typically uses either a single will with international provisions or separate wills for each jurisdiction. The choice depends on the asset mix, your province of residence, and whether any beneficiaries are US persons.

Irrevocable Trusts and Insurance Trusts

For families with larger estates — particularly those with US-citizen children who would inherit otherwise-clean Canadian assets — irrevocable trust structures can move value out of the US estate tax net while preserving Canadian tax efficiency.

Powers of Attorney That Work in Both Countries

A Canadian Power of Attorney is generally not recognized at a US hospital or bank. Snowbirds need both a Canadian POA and a US Durable Power of Attorney drafted to be honoured in the state where they spend time.

What About US Investments?

This is where most Canadians get caught off guard. A Canadian investor with US-listed stocks in a non-registered brokerage account holds US-situs property for estate tax purposes — even though the shares sit in a Canadian institution. RRSPs and TFSAs holding US stocks are treated differently, and the analysis is nuanced.

For Canadian families with significant US investment exposure, our Canadians with US Real Estate team also handles US investment planning — restructuring portfolios, using cross-border holding companies, and coordinating treaty benefits.

Special Situations We See Every Week

The Adult Child Who Became American

Your child moved to the US, got a green card, then citizenship. Their inheritance from you now flows into the US tax system. Without planning, US gift tax can apply to lifetime gifts, and the inheritance can become a tax-reporting headache for them.

The Dual-Resident Couple

One spouse is American, one is Canadian. The unlimited marital deduction available to US-citizen spouses does not apply when the surviving spouse is a non-citizen. Qualified Domestic Trusts (QDOTs) and proper drafting are essential.

The Canadian Business Owner Expanding South

If you are growing into the US market, the estate plan and corporate plan need to be designed together. We cover the corporate side in our Canada–US Corporate Planning guide.

When Should You Start Planning?

The right time is before you buy the US property, before the US move, before your children become US persons, and ideally well before retirement. Restructuring after the fact is almost always possible but is usually more expensive and tax-inefficient than getting it right from day one.

If you already own US-situs assets in your personal name, do not wait. Every year that passes is another year of US estate tax exposure with no exit plan.

Talk to a Canada–US Cross Border Lawyer

Altro LLP is a Canada–US cross border estate lawyer firm helping snowbirds, dual citizens, business owners, and cross-border families coordinate us canada estate planning across two tax systems. We work with families in Ontario, Quebec, British Columbia, Alberta and across the US.