Expatriate Canadian Estate Planning — Living Abroad Long-Term
Emigrating is the estate-planning event that hides in plain sight. People update their will when they marry, have a child, or buy a house — but moving to another country, which changes their tax residency, their assets, and who can act for them, often happens with the old Canadian plan left untouched. For a Canadian expatriate, that plan can be quietly broken in three places at once: the tax it assumes, the assets it covers, and the people it relies on.
This guide maps what changes when a Canadian lives abroad long-term, from the Canadian side. For the foreign-law pieces you need local counsel; this sets out the Canadian framework. It is general information, not advice.
The pivotal question — tax residency
Everything starts with whether you have severed Canadian tax residency. If you have, you are deemed to have disposed of most of your property at fair market value on departure — the departure tax — which can trigger capital gains.[2] Importantly, registered plans (RRSP, RRIF, TFSA) and Canadian real property are excluded from that deemed disposition.[1] Residency is a facts-based determination — it turns on ties like a home, family, and other connections, not on a simple declaration — so confirm your status with a cross-border tax advisor before assuming you are non-resident.
Two countries, two wills
As an expatriate you likely hold assets in two places, and the clean structure is two wills: a Canadian will for Canadian assets and a local will for assets in your country of residence, which are generally governed by local succession law. The essential drafting point is that the two wills must cover different assets and be written so neither revokes the other — a new local will that "revokes all prior wills" can destroy your Canadian one. Coordinate them with lawyers in both countries.
Powers of attorney may not travel
A power of attorney valid in Canada may not be recognized in your country of residence. Expatriates often need a local power of attorney, or its equivalent, for decisions about local assets and personal care. Do not assume your Canadian incapacity documents work abroad; confirm what your country requires and put local documents in place if needed.
Benefits as an expatriate
Your Canadian retirement income follows rules abroad. CPP is generally payable to you wherever you live. OAS is payable abroad generally only if you have at least 20 years of Canadian residence after age 18 (or qualifying time under a social security agreement).[3] Non-resident withholding tax can apply to Canadian pension payments, frequently at a treaty-reduced rate, and non-resident OAS recipients file an annual return.
Keep the Canadian foundation current
Even abroad, your Canadian estate needs a valid, current Canadian will — and, critically, an executor who can realistically act on it, which may argue for naming someone in Canada or a professional. Refresh your beneficiary designations, and keep a clear record of your worldwide assets and your advisors in both countries so your executor is not piecing it together across borders.
What we focus on at It's Simple Will
The Will Creator keeps your Canadian will current and valid from anywhere — the anchor of an expatriate plan — while the local will, local powers of attorney, and cross-border tax work belong with specialists in each country. For specific destinations and situations, see our guides on retiring in Southeast Asia and working abroad.
Related guides
Citations & sources
- [1]Leaving Canada (emigrants) — Canada Revenue Agency
- [2]Dispositions of property for emigrants of Canada (departure tax) — Canada Revenue Agency
- [3]Old Age Security — Do you qualify — Service Canada / Government of Canada
Frequently asked questions
Does moving abroad change my Canadian estate plan?
Usually significantly. You may have severed Canadian tax residency (with departure-tax consequences), acquired assets in another country, and put your named executor and attorney out of easy reach. An estate plan built for life in Canada rarely fits life abroad without revisions to the will, the powers of attorney, and the tax assumptions.
What is departure tax for an expatriate?
When you sever Canadian tax residency, you are deemed to dispose of most of your property at fair market value, potentially triggering capital gains. Registered plans (RRSP, RRIF, TFSA) and Canadian real property are excluded from that deemed disposition. Whether you have actually become non-resident is a facts-based test, so confirm it with a cross-border tax advisor.
Do I need a will in my new country?
Often yes, for assets located there. A Canadian will governs your Canadian assets; local assets are generally dealt with under local law, which can make a separate local will sensible. The two must be drafted to cover different assets and not revoke each other, with lawyers in both countries coordinating.
Will my Canadian power of attorney work abroad?
Not necessarily. A power of attorney valid in Canada may not be recognized in another country, so expatriates often need a local power of attorney (or its equivalent) for decisions about local assets and care. Check what your country of residence requires; do not assume your Canadian document travels.
Can I keep my OAS and CPP as an expatriate?
CPP is generally payable abroad. OAS is payable abroad generally only with at least 20 years of Canadian residence after age 18 (or qualifying time under a social security agreement). Non-resident withholding tax can apply to Canadian pensions, often at a treaty-reduced rate.
What should I keep current in Canada?
Your Canadian will, naming an executor who can realistically act, plus refreshed beneficiary designations and a clear record of your worldwide assets and advisors. Even as an expatriate, your Canadian estate still needs a valid, current Canadian will — and someone able to administer it.