Since the estate will likely take 12 to 18 months to settle and his family and work are in California, this is not feasible. Having a US trust for Doug, who might one day return to Canada, may not be the best arrangement for him. Things are probably not unfolding as Daryl and Debbie intended.
However, the advisor is prohibited by US security laws from providing any investment advice to a US resident. With all of this in mind, is it a good idea to appoint a foreign executor of a Canadian estate? In our experience the answer is, probably not. Given our experience with clients, we know the same concerns work in reverse—where Canadian adults have parents living in other countries. The bond requirement for extra-provincial executors exists in all provinces except Quebec. The court will be reluctant to dispense with a bond when the executor resides outside Canada because the court does not have jurisdiction over the executor.
This information is not intended as tax advice. Cross-border taxation is a complicated topic and current advice from an experienced tax expert is always recommended. Some Canadian investment advisors may be licensed to provide investment advice in California, but it would be a rare circumstance.
Read our insights on how to make a complex process simpler and potentially more tax effective. Search Fiduciary Trust, type your search item and press enter.
Toggle Navigation. Search FiduciaryTrust. What Bond Requirement? This means the estate will likely be treated as a US resident and prompts several consequences: 2 The estate could lose the preferred tax treatment of capital gains and dividends enjoyed as a Canadian resident estate; The estate may be unable to split the tax burden between the estate and beneficiaries as it would if resident in Canada; There will be Canadian income tax withheld at source on Canadian sourced income.
However, naming more than one executor of estate just to avoid hurt feelings can cause more harm than good. If co-executors are named in the will, all of them must act in unison. That means they must all:. In addition, they will all be responsible for paying the estate's bills and debts from estate assets, not their own pockets , and they will all be liable for damage to or loss of any assets.
Because co-executors must agree and act together, naming multiple executors can cause delays and inconvenience. This is especially true if any of the co-executors lives out of town or out of state. If the co-executors have a tendency to disagree, it can cause serious problems with getting your estate wrapped up. In cases of extreme disagreements, one executor or a beneficiary can even ask the probate court to remove one or more of the other executors, so the estate can be settled without too much delay.
As you can imagine, such disputes can result in many years of resentment—exactly what you are trying to avoid in the first place. If you are worried about discord among multiple siblings, the best solution is often to explain to the children both why you are naming only one executor for your estate and why you've chosen the particular child. Usually, the other children see the reasonableness of the choice—and may even be relieved that they won't have the responsibility and work of serving as executor.
As a backup, you could name the other children as alternate executors of the estate. That way, if your first-choice executor does not survive you or is unable or unwilling to serve, the alternate executor takes over. This strategy lets all the children know that you trust them with your estate and just want to make sure things are handled efficiently. There are some situations in which it can make sense to name co-executors. Why would you have more than one executor of a will?
Neither has the legal right to act alone. Canadians are worried being an executor is too much work for just one person. Debts, beneficiaries, taxes, pet care, real estate, and funeral arrangements are just the tip of the iceberg when it comes to executor duties.
If the will is silent on the issue, then unanimous consent is required. A co-executor should not act unilaterally, nor hide information or facts from the other executors. Even with the drawbacks, having joint executors is still a popular choice and does work out well for many Canadians who know their executors are cooperative and up to the task. It will give them an opportunity to ask questions, get clarification or make suggestions if the Will overlooks some material matter.
In our experience, surprises are rarely a good thing in estate matters. Still have questions about being a joint executor? Joint executors need to agree unanimously on estate decisions, which is the main reason having multiple people involved can slow down the administration process. One executor cannot overrule the other, and often disputes arise. This is an uncommon practice for anyone naming or drawing up a will to include and is rarely seen because the language is too vague for something as critical as the appointment of an executor.
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