Why a US Estate Plan May Not Work After Moving to Canada
As a Canada-based cross-border advisor and TEP, I have extensive experience working with clients who have lived in the US and used revocable trusts to avoid probate.
I recently met with a family that held their home and investments in a revocable trust in the United States. They had previously used the trust to avoid probate and to ensure their kids received the assets in a timely manner.
Written By Tiffany Woodfield, Financial Advisor, TEP®, CRPC®, CIM®
When the family moved to Canada, they were surprised to discover that trusts don’t work the same way in Canada.
They wanted to create an estate plan similar to what had worked in the US. However, as US citizens and residents of Canada, they would be at risk of double taxation if they set up a similar trust in Canada.
If they had only searched online for info about the “best trusts” and not spoken with a professional, they may have made a serious error.
Trusts are complex, and there’s no one-size-fits-all approach, particularly within a cross-border context.
This is why it is essential to get proper advice before setting up a trust.
Figure out what matters most to you and know why you want a trust. Then speak to your financial advisor, accountant, and an estate planning attorney or TEP.
If you have ties in Canada and the US, be sure to speak with a dual-licensed advisor who has experience guiding families through the estate planning process.
Why This Matters
Estate-planning strategies do not automatically travel across borders.
Families who move from the United States to Canada must review and revise their estate plans when they cross border.
A trust that worked well under U.S. rules may be taxed or treated differently once Canadian residency begins.
This case shows why the right starting point is clarifying the outcome you want and not immediately assuming that a trust will work.
If you have wealth in more than one country or beneficiaries who live outside your country of residence, it’s critical that you seek professional guidance to uncover any tax, reporting, or administrative complexities.
Key Tools
- Review of the existing U.S. revocable trust
- Canada–U.S. cross-border estate planning
- Cross-border tax analysis
- Coordinated financial, legal, and accounting advice
- Estate-planning goals assessment
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Read More:
💎 What Is Estate Planning in Canada?
💎 When to Use a Trust for Estate Planning in Canada
💎 How Does a Family Trust Work in BC?
About the Author
TIFFANY WOODFIELD is a senior financial advisor, estate-planning expert, and dual-licensed portfolio manager based in Kelowna, British Columbia. She is the co-founder of SWAN Wealth Management, where she helps Canadian and cross-border families build lasting wealth, reduce tax risk, and create meaningful legacies.
As a TEP (Trust and Estate Practitioner) and portfolio manager, Tiffany works closely with successful professionals, business owners, and internationally mobile families who want to enjoy a more flexible, work-optional lifestyle. She combines deep technical expertise in wealth management with a strong focus on mindset, personal development, and purposeful decision-making.
Tiffany has been a contributor to Bloomberg TV and has been featured in major national and international publications, including The Globe and Mail and Barron’s, for her insights on retirement planning, cross-border wealth issues, and estate planning.
Professional designations:
- TEP® – Trust and Estate Practitioner
- CRPC® – Chartered Retirement Planning Counselor
- CIM® – Chartered Investment Manager
*Names have been changed to protect the identity and privacy of the individuals in this story. Please seek the advice of professionals before taking action. This case study is for educational purposes only.