If you hold assets outside of Canada, drafting a will becomes more complex. In a previous article, we explored the unique challenges of owning assets outside Quebec - given the differences between civil law and common law. Here are some key considerations to keep in mind when planning your estate across borders:

Different legal systems

Different countries have distinct legal systems that govern inheritance. Some countries follow civil law, while others adhere to common law. And, even if both countries follow the same legal system, specifics around inheritance may vary. It's essential to understand how each country's legal system will treat your estate. Researching and understanding this is crucial to drafting a will that addresses your needs, supports your philanthropic goals and protects your loved ones.

Seek Professional Advice

One of the most important things to do is to seek advice from legal professionals who specialize in estate planning. They can provide guidance tailored to your needs. Professionals dedicated to cross-border estate planning can help you navigate the different legal systems, tax regimes, and inheritance laws, ensuring that your estate plan is robust and effective. Depending upon your needs and particular circumstances, your preferred professional could recommend a will or even trusts as legal vehicles to protect your assets.

Your advisor could also help you check if there are tax treaties between where you live and where the assets are located, mitigating the risk of double taxation. Consulting with cross-border tax advisors is crucial to minimize the financial impact on your estate. They will be better situated to help you with complex tax regulations and identify strategies to ensure that your assets are preserved for your beneficiaries.

Consider Drafting Multiple Wills

As a rule of thumb, it may be beneficial to have separate wills drafted for each country where you hold assets. This ensures that your wishes are respected and not undermined by the potentially different laws. Furthermore, it is of the utmost importance to coordinate the drafting of wills to avoid conflicts and ensure they do not revoke each other. Working with legal professionals in each country is crucial to help you draft wills that are legally sound, providing clarity and mitigating risk.

Incorporating Charitable Gifts

Including charitable gifts in your will adds a meaningful dimension to your estate plan, but it also requires careful consideration, especially when dealing with international assets. Laws governing charitable donations differ widely across countries, and not all jurisdictions recognize foreign charities for tax benefits. It’s important to ensure that the charity you wish to support is recognized in the country where the gift will be made, as this can affect both the validity of the gift and any potential tax relief. Working with a cross-border tax advisor can help you understand how charitable gifts may impact your estate’s tax liability and guide you in structuring your donations appropriately. With thoughtful planning, you can ensure your philanthropic intentions are honored while maximizing the benefits to your estate and beneficiaries.

Choose Executors Wisely

One of the most important matters is selecting executors who are familiar with the legal systems in each country where you have assets. This can help narrow down the process and ensure that your estate is managed efficiently. As an option, you could appoint a corporate executor, which is a company dedicated to settling estates. Usually, corporate executors are trustworthy, organized, renowned organizations that have the manpower to help your loved ones if needed.

Keep an Updated Inventory of Assets

Maintaining a clear and updated list of your assets could save time for your loved ones and protect them. The number of times I have encountered clients that found assets they were not aware of when settling an estate is impressive. Keeping an updated inventory of your assets, like real estate property, bank accounts, investments, and personal belongings, is another crucial consideration to keep in mind.

Final Thoughts

International estate planning requires thoughtful coordination and expert guidance. By understanding the legal landscape, seeking professional advice, and organizing your affairs, you can create a will that reflects your values, protects your assets, and supports the people and charities you care about.