Foreign Property and a Multiple Will Strategy
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When you own real estate or significant tangible assets outside of Canada, a multiple will strategy is often less about tax savings and more about the fundamental legal recognition of your wishes. While a single Canadian will is technically capable of disposing of worldwide assets, many foreign jurisdictions (especially civil law countries in Europe or South America) do not automatically recognize the authority of a Canadian court or the validity of a Canadian-executed document. By creating a separate situs will that specifically governs property in the foreign location, you ensure that the document meets the local formalities (i.e., correct language, appropriate execution requirements), while properly coordinating for it to work in tandem with your primary Canadian will.
One of the most significant advantages of this approach is the reduction of administrative delays and the complexities of the resealing process. If you rely on a single Canadian will, your executor must first obtain probate in Canada and then apply to the foreign court to have that grant resealed (or recognized), which can be an agonizingly slow and expensive process involving certified translations and legal opinions on Canadian law. With a dedicated foreign will, the probate process can often run concurrently in both jurisdictions. This means your foreign assets can be managed, sold, or transferred to beneficiaries much sooner, without being bottlenecked by the timeline of the Canadian estate administration.
Furthermore, a multiple will strategy allows you to navigate the specific succession laws of the foreign jurisdiction, such as forced heirship rules. In many countries, the law mandates that a certain percentage of your estate must pass to your spouse or children, regardless of what your Canadian will says. A local will, drafted with the help of counsel in that jurisdiction, can be tailored to address these requirements or utilize local planning tools to mitigate their impact. Relying on a Canadian will to override foreign statutory inheritance rights is a common pitfall that often leads to protracted litigation and the eventual invalidation of those specific bequests by the foreign court.
The choice of an executor is another critical component that a multiple will strategy addresses effectively. Many jurisdictions have restrictive requirements for who can act as an executor, sometimes requiring the person to be a resident of that country or to post a significant bond if they are a foreigner. By using separate wills, you can appoint a local, trusted professional or family member in the foreign jurisdiction who understands the local banking system, property registry, and tax obligations. This avoids the logistical nightmare of a Canadian executor trying to manage foreign real estate from thousands of miles away, dealing with time zones, language barriers, and unfamiliar legal registries.
Finally, the most vital aspect of executing multiple wills is the coordination between the documents to prevent accidental revocation. Most standard Canadian wills contain a "revocation clause" that cancels all previous wills; if not carefully drafted, a new Canadian will could inadvertently revoke your carefully planned foreign will, or vice versa. It is essential that each document explicitly defines its territorial scope (i.e., by stating that the Canadian will governs all assets except for real estate located in a specific country). This ensures that the two legal documents function as a cohesive pair rather than competing instruments, providing a clear and legally sound roadmap for your global estate.
Achieving the appropriate legal strategy when you own foreign property comes from addressing the matter early on with knowledgeable legal counsel that can properly investigate and coordinate to produce a will and other estate planning documents that optimize your outcome. We welcome you to contact our law firm today at 403-400-4092 or via email at Chris@NeufeldLegal.com to schedule a confidential initial consultation.
IMPORTANT NOTE: This website is designed for general informational purposes. The site is not designed to answer specific questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as substitute for individual legal advice. If you want specific legal advice, you need to engage a lawyer under established legal engagement procedures that have been specifically agreed to by that lawyer.
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