*This is an updated version of the paper originally published on February 27, 2013.*
So, you married an American.
The good news is that it is definitely better than marrying an axe murderer, but cross-border couples – Canadian families that have one spouse who is an American citizen – may face particular challenges in tax and estate planning. The United States applies its full taxation and compliance regime to all of its citizens, even when they do not reside in the U.S. This means that U.S. citizens who reside in Canada are subject to taxation by both countries – Canada because of residency and U.S. on account of citizenship.
In this article, Davis LLP's Will Todd provides an overview on U.S. tax laws that could affect cross-border couples in their estate planning.
This article is intended to provide general comments on developments in the law. It is not intended to be a comprehensive review nor is it intended to provide legal advice. Readers should not act on information in the presentation without first seeking specific advice on the particular matter. The firm will be pleased to provide additional details or discuss how this information is relevant to a specific situation; please contact the author.