How is foreign property handled in an Ontario estate?

When an Ontario resident dies owning real property outside Canada — a vacation home in the United States, for example, or land in another country — that property is generally subject to the laws of the jurisdiction where it is located, not Ontario law. This can create significant complexity in estate administration.

The Ontario executor may need to apply for probate not only in Ontario but also in the foreign jurisdiction. Many countries will not recognize a Canadian probate certificate, and some require a separate "ancillary" administration process under their own laws. This can mean hiring foreign legal counsel, dealing with different succession laws, and potentially paying estate or inheritance tax in that country.

The United States, for example, imposes its own estate tax on US-situs assets owned by non-residents, above certain thresholds set by US federal law. The Canada-US tax treaty provides some relief but does not eliminate the issue.

Personal property located abroad — bank accounts, investments, vehicles — may be handled differently from real property depending on the country involved. Some countries respect the deceased's home country's succession laws for movable property.

If you own property outside Canada, it is important to get advice from a lawyer in both Ontario and the foreign jurisdiction. You may also need to consider whether a separate will for the foreign property makes sense, drafted to comply with local law.