Canada: Wills/ Intestacy/ Estate Planning

Cross-border couples face complex tax implications when a Canadian spouse names their U.S. citizen partner as beneficiary of a Tax-Free Savings Account (TFSA). While TFSAs offer tax advantages in Canada, the IRS treats income from these accounts differently for U.S. persons, creating unexpected reporting obligations and potential tax consequences that require careful estate planning coordination between both countries.

Cryptocurrency has become a significant source of wealth for many Canadians. Whether an individual holds Bitcoin as a long-term investment, actively trades digital assets, participates in staking programs, or engages in decentralized finance (DeFi), cryptocurrency can create unique estate planning challenges that do not arise with traditional investments.

In Ontario, a beneficiary under a will or an intestacy cannot be compelled to accept an inheritance or a gift. A beneficiary has the option of choosing whether to accept an inheritance, or alternatively, whether to not accept, or in legalese, to “disclaim” an inheritance.