Creating a will is one of the most important steps in protecting your family and managing your assets. But for people who have connections in both the United States and Canada, the process can be a little more complicated. Many families live, work, or own property in both countries, and that means deciding whether to have a U.S. will, a Canadian will, or sometimes both. Understanding the right approach can save your loved ones from confusion, delays, and unnecessary taxes in the future.

A will is a legal document that explains how your assets will be distributed after your death. However, wills are governed by local laws, which means a will made in one country might not automatically work in another. For people involved in cross-border financial planning, this becomes an important issue. For example, a Canadian who owns property in Florida or a U.S. citizen who has investments in Toronto needs to make sure their estate plan fits the rules of both countries.

In most cases, experts recommend having a separate will for each country where you own major assets. This is because the legal systems, tax rules, and probate procedures in the U.S. and Canada are different. If you only have one will that covers both countries, it could cause delays during probate, and the court in one country may not easily accept a foreign legal document. Having two wills—one for your U.S. assets and one for your Canadian assets—can make things smoother and faster for your heirs.

For example, if you are a Canadian resident who owns a vacation home in the U.S., your Canadian will may not be recognized by the U.S. court where the property is located. By creating a U.S. will for that property, you ensure the asset is handled according to local law. Similarly, if you are a U.S. citizen living in Canada, your American will might not be valid under Canadian estate rules, especially when dealing with Canadian bank accounts, RRSPs, or real estate. Having a separate Canadian will can help avoid legal challenges.

However, it is important to coordinate both wills carefully. If your U.S. and Canadian wills are not written properly, one could accidentally cancel the other. That’s why working with professionals who understand cross-border financial planning and international tax planning is essential. They can make sure each will covers only the assets in that specific country and that both documents work together, not against each other.

Taxes are another major reason why separate wills can be helpful. The U.S. and Canada have different rules for estate taxes and capital gains. The United States charges an estate tax on the total value of what you leave behind, while Canada does not have an estate tax but treats death as if you sold all your assets, leading to potential capital gains tax. These differences make international tax planning very important. A well-structured plan can reduce double taxation and make sure your heirs receive as much of your estate as possible.

Another thing to consider is timing. You should create a second will as soon as you acquire significant assets in another country. Waiting too long can create problems if something unexpected happens. It’s also wise to update both wills whenever there are changes in your family situation, such as marriage, divorce, or new children, or if you buy or sell international property.

For people with more complex situations—like business ownership, trusts, or dual citizenship—professional help is a must. A cross-border financial advisor or lawyer can help you decide whether one coordinated will is enough or if you truly need two separate ones. They can also guide you through power of attorney documents and healthcare directives that comply with both legal systems.

In summary, having both a U.S. and a Canadian will is often the safest choice for individuals with assets in both countries. It ensures that your estate is handled efficiently and according to local laws, avoiding unnecessary costs and confusion. By combining the right legal advice with smart cross-border financial planning and international tax planning, you can create a clear and secure path for your loved ones to follow when the time comes. Taking these steps today brings peace of mind and helps protect your legacy across borders.