Tax Insights: Estate tax update – US estate tax exposure for Canadians (2017 edition)

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Issue 2017-03

Canadian residents (who are not US citizens) may be subject to US estate tax if they die owning certain US assets, such as shares of US corporations, US real estate and US business assets.

Under the Canada-US Tax Treaty, Canadian residents will now have a US estate tax liability only if their worldwide assets are valued at more than $5.49 million.

This Tax Insights sets out the potential exposure of Canadians to US estate tax. All amounts are in US dollars.

US tax reform: President Trump has proposed significant changes to the US tax system, including a possible repeal of the US estate tax and implementing some form of capital gains taxation at death. If these measures are enacted, traditional US estate planning strategies likely will have to change. You should seek US tax advice before proceeding with any US estate planning.