Inheritance Law in Canada for Expats: Complete Guide

Foreigners who inherit in Canada must follow provincial rules on wills, inheritance and property transfers, which can affect timing, taxes and legal obligations.

Understanding probate law in Canada is essential to navigating these processes and avoiding costly mistakes.

This article covers:

• Do non-residents pay inheritance tax?
• How does inheritance work in Canada without a will?
• Can a non-citizen inherit?

Key Takeaways:

• Foreigners can inherit in Canada, but there are probate and legal steps to follow.
• Canada has no inheritance tax, but capital gains may apply to inherited assets.
• Non-residents who inherit real estate may face additional legal and tax requirements.
• Intestinal rules regulate the inheritance if there is no valid will.

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The information in this article is intended as general guidance only. It does not constitute financial, legal or tax advice, and is not a recommendation or invitation to invest. Some facts may have changed since the time of writing.

What are the inheritance laws in Canada for foreigners?

Inheritance laws in Canada are governed primarily at the provincial level, with each province having specific rules regarding wills, wills (if no will exists), and inheritance.

Foreigners can inherit Canadian assets, but they may have to navigate:

• Requirements for probate: Estates generally must undergo probate to confirm the validity of a will.
• Restrictions on Ownership: Although most provinces allow foreigners to own property, some provinces require additional documentation for land transfers.
• Tax considerations: Although Canada does not impose a federal estate tax, certain provincial or capital gains taxes may apply to non-residents.

Can a non-citizen inherit in Canada?

Yes, a non-citizen can inherit in Canada.

There are no laws that prevent non-citizens from receiving assets through a valid will.

Can a non-resident inherit property in Canada?

Non-residents can inherit Canadian property, but capital gains taxes apply and certain legal rules must be followed.

• Capital gains tax: Any sale of inherited property is subject to Canadian capital gains tax, calculated as if the property had been sold at fair market value on the date of death.
• Certificate of Appointment of an Estate Manager: The executor or administrator of the estate must obtain this certificate from the court in order to legally transfer the property to the beneficiaries. Non-resident heirs may need the trustee to handle this on their behalf.
• Mortgages and liens: Any outstanding debts, liens, or mortgages on the property must be resolved before ownership can be transferred.

How long does it take to get inheritance money in Canada?

Most beneficiaries in Canada receive inheritance money within six to 12 months, although complex estates can take significantly longer.

The exact timeline depends on the structure of the estate, whether a valid will exists, and whether any probate or tax issues arise:

• Simple inheritances with a will: Typically six to twelve months after probate, debt and tax returns have been completed.
• Inheritances without a will or with disputes: Often 1 to 2 years or longer, due to judicial appointments, claims or lawsuits.
• Non-resident beneficiaries: Delays may occur due to international banking audits, tax declarations and cross-border inheritance requirements.

Is there inheritance tax due in Canada for non-residents?

Canada does not charge inheritance taxes, even for non-residents.

That said, inheriting a Canadian estate may still give rise to other estate-level taxes and charges that foreigners should be aware of:

• Assumed disposal tax: When the deceased dies, Canada treats most assets as if they were sold at fair market value, which can result in capital gains taxes payable by the estate.
• Withholding tax for non-residents: Non-resident beneficiaries may be subject to withholding on certain types of Canadian source income, such as rental income or dividends.
• Provincial inheritance costs: These fees vary by province and are paid out of the estate before the assets are distributed to the beneficiaries.

Who gets an inheritance if there is no will in Canada?

In Canada, if someone dies without a will, his/her spouse or common-law partner and children are the primary heirs under provincial intestacy laws, while other family members inherit only if no immediate family exists.

A spouse or partner usually receives most or all of the estate, depending on the province and whether there are children.

Children inherit next, followed by parents, siblings and then more distant relatives.

Although the exact division varies by province, the order of inheritance follows a consistent legal hierarchy across Canada.

Who inherits if a beneficiary dies in Canada?

If a beneficiary dies before the person who made the will, the estate is redistributed according to the terms of the will or the Canadian intestacy laws.

In practice:

• The inheritance can pass to the descendants of the deceased beneficiary, if this is clearly stated in the will.
• If no alternate or alternate beneficiary is named, the gift generally returns to the estate and is distributed according to the rules of the will or, if necessary, of the provincial wills.

Why Canada is easier for foreign heirs than the UK, US and Europe

Canada is widely considered one of the most foreign-friendly inheritance jurisdictions because it combines clear inheritance rules, no inheritance taxes, and relatively predictable inheritance procedures for non-residents.

No inheritance tax at beneficiary level
Unlike Britain and most of Europe, Canada does not impose estate or inheritance taxes on beneficiaries.

There is no equivalent to UK inheritance tax or EU inheritance tax.

Instead, tax is handled at the estate level through a deemed disposition of assets at death, which simplifies outcomes for foreign heirs and avoids surprise tax bills related to the heir’s place of residence.

No rules for forced heirs
Unlike many European countries such as Germany, France, Spain and Portugal, Canada does not impose forced heirship.

Testators are generally free to distribute assets as they wish, with only limited entitlements to family support in certain provinces.

This makes estate planning much more flexible for international families and reduces the risk of legal excesses.

Nationality and residency are not relevant
Canada does not distinguish between citizens, residents and foreigners when determining inheritance rights.

Foreign heirs inherit under the same legal framework as Canadians, unlike the US where non-resident aliens face complex estate taxes, or the UK where residency rules can lead to global taxation.

Probate is more predictable than that in Britain and the EU
Although probate is required in Canada, the process is generally more standardized and less fragmented than in Europe, where multiple legal systems and probate regimes may apply to the same estate.

In Britain, delays in probate and inheritance tax clearance often significantly extend deadlines for foreign beneficiaries.

Canada’s province-based system is relatively easier to navigate with proper documentation.

No inheritance tax for non-resident heirs
The United States imposes federal estate taxes on US assets owned by non-residents, with a very low exemption threshold, making this one of the most punitive systems for foreign heirs.

Canada avoids this completely, making it a safer jurisdiction for cross-border families who own property or investments.

Overall, Canada’s inheritance framework prioritizes administrative clarity over punitive taxes or strict inheritance rules.

For foreign heirs, this results in fewer legal barriers, less tax uncertainty and a smoother transfer of assets compared to the UK, US and most European jurisdictions.

Conclusion

The Canadian inheritance framework is generally accessible to foreigners, but outcomes are highly dependent on provincial regulations, estate planning and tax compliance.

Especially for non-residents, issues such as inheritance, ownership transfers and cross-border tax risks can complicate a complicated inheritance.

Careful planning and timely legal guidance can ensure that Canadian assets are transferred efficiently and in accordance with the deceased’s intentions.

Frequently asked questions

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