If you own a vacation or investment property outside Canada, review with your lawyer how best to ensure that costs and complications to your estate are minimized. Although many jurisdictions will recognize a Will drafted and signed in Canada, some will not. Even if the Will is recognized, the legal system of another jurisdiction may differ from Canada’s and could result in an unexpected distribution.
We recommend that you ask the lawyer in the foreign jurisdiction to describe the process to complete the transfer of the foreign real property to the beneficiary that you have named. Ask the approximate cost for legal fees, probate fees, taxes and other amounts related to the transfer. Ask if the process and associated costs differ if the transfer occurs under the Canadian Will if you have only one Will, or under the foreign Will if you have two Wills. Lastly, ask if there are additional steps you can take in advance to ensure that the transfer can be completed as smoothly as possible. The answers will help you decide how best to proceed.
To minimize problems, either have your Canadian Will reviewed by a lawyer licensed to practice in the jurisdiction where the real property is located or have a Will drafted in the other jurisdiction to deal only with your foreign property. If you have two Wills (one dealing with your foreign property and one dealing with everything else you own including Canadian real property) it is important that neither Will revoke the other. Ask your Canadian lawyer to review your foreign Will and, similarly, ask the foreign lawyer to review your Canadian Will to ensure that there is no conflict between the two Wills or the respective legal systems and that neither Will revokes the other.
Reproduction of this blog is permitted if the author is credited. If you have questions or if you would like more information, please call us at 613 836-9915. This blog is not intended to be legal advice but contains general information. Please consult a lawyer or other professional to determine how the information in this blog might apply to you.
Blog posts pre-dated December 1, 2015 were originally published under Neff Law Office Professional Corporation.
