Canadians Working Abroad — Estate Planning for a Posting
A two-year posting to London, a secondment to Dubai, a contract in Singapore — working abroad temporarily is not the same as emigrating, and the estate-planning implications are different too. The expatriate who has left for good faces departure tax and a two-country plan. The employee on a fixed-term assignment usually keeps one foot firmly in Canada, which simplifies the tax but leaves a different gap: who manages their Canadian affairs, and who could administer their estate, while they are on the other side of the world.
This guide covers estate planning for a Canadian working abroad on a temporary basis. It is general information, not advice; tax residency in particular is fact-specific.
You probably remain a Canadian tax resident
The first question is residency, and for a temporary posting the usual answer is that you keep Canadian tax residency. If you retain significant ties — a home, family in Canada, registered accounts — and intend to return, you generally remain a Canadian tax resident, with worldwide income still taxable in Canada and no departure tax.[1] A long or indefinite posting where you cut those ties can sever residency and bring departure tax into play,[2] but that is the exception for fixed-term assignments. Because it is a facts-based test, confirm your status rather than assuming.
Your Canadian will still works — make sure it can be used
A valid Canadian will remains valid while you are abroad. The practical risk is not validity but administration: if something happened, could your named executor actually act? Before you leave, make sure your will is current, and consider whether your executor is well-placed — naming someone based in Canada is often the practical choice for an estate that is mostly Canadian.[3] Refresh your beneficiary designations at the same time.
Set up a power of attorney at home
This is the step most worth taking before a posting. A Canadian power of attorney for property lets a trusted person manage your finances, property, and paperwork while you are overseas and hard to reach — paying bills, dealing with the bank, handling a property. It is valuable even setting incapacity aside, simply because distance makes routine Canadian administration awkward. Pair it with a power of attorney for personal care.
Local assets and a local will
If the posting leads you to acquire meaningful local assets — a vehicle, a local bank account, property — those may be governed by local succession law, and a local will for them, coordinated with your Canadian will, can be worthwhile. For a short assignment with few local assets, your Canadian will may be all you need. Keep the two wills from overlapping or revoking each other if you do make a local one.
If the worst happens abroad
Should you die during the posting, your Canadian will governs your Canadian estate and Canadian probate proceeds as usual. A death in the host country brings in local steps and consular assistance, and any local assets are handled under local law — see when a Canadian dies abroad. Carrying insurance that covers repatriation is a sensible precaution for any extended assignment.
What we focus on at It's Simple Will
The Will Creator makes it easy to put a current Canadian will in place before you go and update it from abroad, with an executor who can act. For a permanent move rather than a posting, see expatriate Canadian estate planning; for coming home, see returning to Canada.
Related guides
Citations & sources
- [1]Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status — Canada Revenue Agency
- [2]Leaving Canada (emigrants) — Canada Revenue Agency
- [3]Administering estates (Ontario) — Government of Ontario
Frequently asked questions
Do I lose Canadian tax residency when I work abroad temporarily?
Often not. A temporary posting where you keep significant ties — a home, family in Canada, registered accounts — and intend to return usually means you remain a Canadian tax resident, with worldwide income still taxable here and no departure tax. But a long or indefinite posting where you cut ties can sever residency. It is a facts-based test, so get advice.
Is there departure tax for a work posting?
Only if you actually become a non-resident. If you remain a Canadian tax resident for the assignment — common for fixed-term postings — there is no deemed disposition and no departure tax. If the posting severs your residency, the departure-tax rules apply, with registered plans and Canadian real property excluded.
Does my Canadian will still work while I'm abroad?
Yes. A valid Canadian will remains valid while you are working abroad. The practical issue is administration: make sure the will is current before you leave and that your named executor can realistically act, which often means choosing someone based in Canada. Update beneficiary designations at the same time.
Should I set up a power of attorney before leaving?
Strongly recommended. A Canadian power of attorney for property lets a trusted person at home manage your finances, property, and paperwork while you are overseas and harder to reach. It is useful even setting incapacity aside, simply because being abroad makes day-to-day Canadian admin difficult.
What about assets I buy during the posting?
Local assets you acquire abroad — a vehicle, a local account, property — may be governed by local succession law, so if they are significant consider a local will for them, coordinated with your Canadian will. For a short posting with few local assets, your Canadian will may be all you need.
What happens if I die during the posting?
Your Canadian will governs your Canadian estate, and Canadian probate proceeds using the death certificate. If you die in the host country, local steps and consular help come into play, and any local assets are handled under local law. Carrying insurance that covers repatriation is worth doing for any extended posting.