Will And Estate Planning Considerations For Canadians With U.S. Connections

Canadian citizens and residents may be exposed to U.S. estate, gift, and generation-skipping transfer tax (together, "U.S. transfer taxes") on the value of certain property gifted or transferred during lifetime or on death. Without realizing it, you and your executors and trustees may have certain liabilities and obligations under the U.S. transfer tax regime.

U.S. citizens and persons domiciled in the U.S. for transfer tax purposes ("U.S. Persons"), are generally liable for U.S. estate tax on the gross value of their worldwide estates, subject to allowable exclusions, deductions and credits. In addition, Canadian tax residents who are not U.S. Persons are generally liable for U.S. estate tax on their U.S. situs property, including U.S. real estate and tangible personal property and certain U.S. securities and other assets.