Canadians who own U.S. property may also be subject to U.S. estate tax. This tax is based on the fair market value of all U.S. assets owned at the time of death. It can climb up to 40% depending on the value of the U.S. asset and the value of the worldwide estate. Only Canadians who exceed the worldwide estate exemption are subject to U.S. estate tax. This exemption varies with inflation and can change drastically when new laws are passed in the U.S. In order to eliminate or minimize the burden of U.S. estate tax, incapacity hearings and probate, our team may recommend that clients own U.S. property other than in their personal names, such as in a Cross Border Trust.