[Winter 2026 GPS] Do You Own US Stocks? Think US Estate Taxes

James Schofield - Mar 27, 2026

You could be subject to US estate taxes after death if you directly hold US shares, even if you're a Canadian resident.

Canadian investors who directly own U.S. shares may be subject to U.S. estate tax upon death, even if they reside in Canada. If you directly hold shares of U.S. companies — such as Apple, Microsoft, Amazon, or any other U.S.-listed stock — those shares are classified as U.S.-situated property by the IRS. This means that upon death, your estate could be subject to U.S. estate tax, even though you are a Canadian resident and the shares are held in a Canadian brokerage account.

 

It should be noted that units of Canadian mutual and segregated funds are not regarded as U.S.-situated property, even if these funds invest in U.S. stocks. In other words, the shares of U.S. companies must be held directly for that exposure to U.S. estate taxes to occur.

 

Why it matters:

  • The U.S. estate tax exemption for non-U.S. persons is only US$60,000 — far lower than the exemption available to U.S. citizens.
  • U.S. estate tax rates can reach as high as 40% on amounts above the exemption.
  • The Canada–U.S. Tax Treaty provides some relief by prorating the higher U.S. exemption based on the ratio of your U.S. assets to your worldwide estate, but depending on the size of your U.S. holdings, a significant tax liability can still arise.
  • Your estate may also face Canadian deemed disposition taxes at the same time, creating the potential for double taxation that credits may not fully eliminate.

 

What you can do:

There are straightforward planning strategies to manage or reduce this exposure — such as reviewing the size of direct U.S. stock positions, considering alternative holding structures, and ensuring your overall estate plan accounts for cross-border tax obligations.

 

It's Tax Season

You all should have received an email from us on March 5th, outlining all the different Tax slips you may receive from CI Assante. We hope the email was useful. Please note that some T-Slips are uploaded to the CRA in the second half of March. If you want to file before April, please check with us to ensure you have everything you need.

 

Thank you for reading. We look forward to seeing you all in the office. In the meantime, as always, please let us know if there's anything we can do to help or clarify further.

 

All the Best!