US Asset Ownership and the Transfer of Wealth
As Ms. Angelini noted last week, the Six-Minute Estates Lawyer 2011 presented by the Law Society of Upper Canada took place recently. As always, there were many interesting speakers and the topics covered address some of the most relevant issues in estate matters. On this point, I’m not speaking facetiously when I say that my ears perked up when the issue of U.S. Estate Taxes for Canadians with US Real Property was announced.
On many occasions we have noted that in the near future we are bound to see the greatest passing down of wealth in history. There has also been a great deal of discussion on this and other forums regarding the new estate and gift tax laws in the U.S. Mr. Kevin Gluc of Hodgson Russ LLP in Buffalo, N.Y., gave a brief but informative presentation at the Six-Minute Estates Lawyer this year, providing specific information to Canadians interested in holding U.S. property, and further, how such property is likely to pass on death and the taxes likely to be levied on such a transfer.
Mr. Gluc highlighted some of the tax exemptions available to Canadians who hold U.S. assets, as well as the benefits and drawbacks of various manners of holding title jointly, with particular attention paid to the Estate tax implications on the death of one of the owners. Of surprise to some may be that holding property as ‘joint-tenants with right of survivorship’ may not be the most tax effective strategy for spouses intending to purchase property in the U.S.
If you intend to purchase property in the U.S., or currently hold property and are considering how to address it in your estate plan, it may be worthwhile to speak to someone who is able to discuss the nuances of each particular type of ownership, in relation to its American tax implications before making any final decisions.
Until Tomorrow,
Nadia M. Harasymowycz - Click here for more information on Nadia Harasymowycz.
