Managing International Assets in Your Estate Plan

We’ve noticed that many of our clients have international assets that bring an extra layer of complexity to their estate planning. Whether you’re a snowbird who visits Florida in the winter or you have a seaside villa in Spain that brings you joy, international assets require special consideration in your overall plan.

The reality is that owning property or assets outside Canada can create significant complications for your family if not properly addressed. Here’s what you need to know to protect both your international investments and your loved ones.

The Challenges Your Family Could Face

When you own assets in multiple countries, your estate may need to go through legal processes in each jurisdiction where you hold property. This means your family could be dealing with probate courts in Manitoba AND a completely different territory, each with their own laws, timelines, and costs.

Different countries have vastly different rules about inheritance, taxation, and what documents they’ll recognize. Not to mention, the laws in the US can vary from state to state. Your will might be perfectly valid here, but that Spanish villa could be subject to completely different inheritance laws that don’t align with your wishes.

Currency fluctuations, foreign tax obligations, and international banking regulations can also create unexpected complications and costs for your beneficiaries.

Key Planning Considerations

Tax Implications: International assets often trigger tax obligations in multiple countries. Your estate might face Canadian taxes, plus additional taxes in the country where the asset is located. Without proper planning, this can significantly reduce what your family ultimately receives.

Documentation Requirements: Some countries require specific types of wills or estate documents. Your standard Manitoba will might not be sufficient to transfer that Florida condo or European property.

Professional Networks: Managing international assets often requires legal and accounting professionals in each jurisdiction. Having these relationships established beforehand can save your family significant time, stress, and money.

Timing and Coordination: Different countries move at different speeds when processing estate matters. This can create cash flow issues if your family needs to access funds but assets are tied up in lengthy foreign legal processes.

Practical Steps to Protect Your International Assets

Start by creating a comprehensive inventory of all your international holdings – real estate, bank accounts, investments, and even business interests. Your family needs to know what exists and where.

Consider whether your current will adequately addresses these assets or if you need additional documentation for specific jurisdictions. Sometimes, a separate will for foreign assets is the most effective approach.

Review your beneficiary designations on international accounts and investments. These can sometimes bypass probate requirements, but they need to be coordinated with your overall estate plan.

Don’t Let Geography Complicate Your Legacy

International assets shouldn’t prevent you from enjoying the lifestyle you’ve worked hard to create. But they do require thoughtful planning to ensure your family can efficiently manage your estate across borders.

If you have international assets and haven’t reviewed how they fit into your estate plan, now is the time to address these complexities before they become problems for your loved ones.

Ready to discuss how your international assets fit into your overall estate strategy? Give us a call at (204) 925-1900 or schedule an appointment online. We can help you navigate these complexities with confidence.