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The recently passed One Big Beautiful Bill Act brings major changes to the U.S. tax system and some of those changes create important estate planning opportunities for Canadians who own property or investments in the United States.
One of the most significant updates is the increase to the U.S. federal estate tax exemption, which will rise to $15 million per person starting January 1, 2026. For couples, that means a combined exemption of $30 million.
Why This Matters for Canadians
For Canadians who own U.S.-situated assets, such as U.S. real estate, shares in U.S. companies, or other property located in the U.S., this is a key development. Normally, Canadians (as nonresidents for U.S. tax purposes) are only exempt from U.S. estate tax on the first $60,000 USD of U.S. assets. Anything above that could be taxed at rates up to 40%.
The new $15 million exemption changes the landscape. It offers a valuable window for Canadians to:
- Review their cross-border assets
- Put planning in place to reduce or eliminate future U.S. estate tax
- Pass more wealth to loved ones without as much lost to tax
While this increased exemption creates new opportunities, it's important to remember that it won't last forever. Planning ahead can help you take full advantage of the current rules and avoid surprises down the road.
If you own U.S. assets and want to understand how the One Big Beautiful Bill Act might affect your estate plan, please don't hesitate to contact us. We would be happy to guide you through your options and help you protect what you have built.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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