Normally, an individual will complete a Will and other estate planning documents where (s)he is “domiciled,” which is a legal concept similar, but not identical, to “residence.” What happens when you own property outside of your home state or province, though? There are several options that are available to you to address this issue.
You could own the property through a corporation or other type of entity. If the property is a personal use one, though, that could create some tax issues for you. Additionally, the shares that you own in the corporation will form part of your estate and may be subject to probate proceedings. Alternatively, you could own the property in a trust, but you have to take great care in what type of trust is used. A Canadian trust holding US property will be subject to FIRPTA withholding on the sale or transfer of the property, but, properly drafted and implemented, it is effective in avoiding probate proceedings. A US trust may not be subject to FIRPTA, but it may be subject to tax reporting in Canada. Additionally, you will have to find a US resident to be the trustee in order to ensure that it is considered to be a US trust.
For most people, if it is a personal use property, owning the property in your personal name is a good option. While property in your personal name is normally subject to probate, in some states, you can title the property in a way that avoids probate, such as using tenancy by the entirety or beneficiary deeds. That being said, you should still make sure to discuss estate planning with your legal advisor. You want to be sure that you have planned for decision-making in the event that you are temporarily incapacitated, and a good estate plan will include this contingency.