Ontario Executor Duties for Foreign Property or Assets Abroad

Finding out that the person who died owned a condo, bank account or investments in another country can be a surprise. As executor in Ontario, you may wonder whether your Ontario appointment is enough to deal with it.

This article explains which of your Ontario responsibilities still apply and why you will usually need advice from the place where the asset is located.

Start with the Ontario side

A person named as estate trustee in a will does not have to act. If you accept, your first steps are the same as for any estate. If the deceased owned real property or assets held by a financial institution, the estate normally must be probated, although probate is not always required.

Within 180 calendar days of receiving a certificate of appointment, the estate trustee must file an Estate Information Return. Whether a foreign court, registry or financial institution will accept an Ontario appointment, or will require its own local process, depends on that place's rules. This is the main reason to get local advice.

Record-keeping and investing duties for foreign assets

How Ontario's duties apply to an asset held abroad depends on your situation, so it is worth confirming with a lawyer. Under Ontario's Rules of Civil Procedure, estate trustees must keep accurate records of the estate's assets and transactions. When investing estate property, a trustee must exercise the care, skill, diligence and judgment of a prudent investor.

Track foreign assets carefully, including values, account details, rent or income and any costs of looking after them. Money you spend to protect or manage them should be documented too. An estate trustee who believes an expense is properly incurred in carrying out the trust may pay it from estate property, or pay it personally and recover it from the estate, but the court may later disallow the payment or recovery.

Costs of foreign lawyers, translations and currency conversion can add up, so keep receipts and records.

Tax and clearance

As legal representative, you must file all required returns for the deceased, make sure any balance owing is paid before distributing the estate, and confirm that all balances owing to the CRA are resolved. Whether the foreign country also has tax or other charges on the property depends on its law, and an accountant with cross-border experience can confirm this.

A clearance certificate confirms that the estate has paid all amounts of income tax. If you distribute assets without one and tax is owing, you are personally liable for the unpaid amounts, up to the value of the assets distributed. It is requested on Form TX19 only after the required returns are filed and assessed and taxes are paid or secured.

Selling, transferring and distributing

Ontario's official guidance says the estate is distributed once assets have been liquidated and the funeral and burial expenses and any debts have been paid. Foreign assets may take longer to deal with, which can delay the final distribution.

• Whether the property can be sold, transferred in kind to a beneficiary or retained depends on the foreign rules and the will.
• Currency conversion and timing can affect what the estate receives.
• Beneficiaries should be kept informed about delays, since a beneficiary can ask the court to require accounts.
• Accounts filed with the court include assets at the date of death, all money received, all liabilities, and a statement of the compensation claimed.

What to do next

• Make a list of every foreign asset, with the country, institution, account or title details and approximate value.
• Gather the will, death certificate and your Ontario certificate of appointment, if you have one.
• Hire a lawyer in the country where the property is located to explain local steps.
• Speak with an Ontario lawyer and accountant to coordinate the Ontario process and tax filings.
• Do not distribute the estate until the tax position is settled.

Because the rules differ from place to place, an early conversation with advisors in both places can prevent delays and costly mistakes.

Frequently asked questions