The 7-step journey
The 7 steps below cover the typical journey of a Canadian heir to a Florida property, from death to final distribution.
Step 1 — First 72 hours: secure property and declare death
Physically secure the property: lock change, alarm activated, trusted neighbour for monitoring. Notify the title company holding title, property insurer (vacancy policy needed if empty), HOA if condo, and utilities. Declare death to both countries: DRHC in Canada (RAMQ or OHIP, CPP), and Florida Department of Health for U.S. death certificate (multiple originals needed for procedures).
Manual articles for this step:
Step 2 — Florida probate: opening, ancillary, formal vs summary
If the deceased resided in Canada, you open an ancillary probate in Florida for the Florida asset. If the deceased resided in Florida, full Florida probate. Summary administration is available if asset value under USD 75,000 or more than 2 years since death. Formal administration is required otherwise. A Florida attorney is mandatory for formal administration (FL Statute 733.611). Timeline 6 to 18 months.
Manual articles for this step:
Step 3 — Appraisal and decision: sell, keep, or rent
Get the property appraised at date of death (step-up basis for future gain calculation). Three choices: sell immediately after probate (most common among Canadian heirs), keep as second home (title transfer via deed), or rent (rental income and T776 + 1040-NR obligations). The date-of-death appraisal becomes the adjusted cost base for future capital gain calculation on sale.
Manual articles for this step:
Step 4 — Estate tax: U.S. 60,000 threshold, treaty, QDOT
For a U.S. non-resident (the Canadian deceased), U.S. estate tax applies to U.S.-situs assets (Florida property, U.S. stocks, etc.) above USD 60,000. The Canada-U.S. treaty (Article XXIX-B) grants a proportional unified credit based on U.S. assets / worldwide assets ratio. For a Canadian surviving spouse, the QDOT (Qualified Domestic Trust) allows deferring estate tax until spouse's death, with strict conditions (U.S. administration).
Manual articles for this step:
Step 5 — Managing the property during probate
During 6 to 18 months of probate, the property continues to generate costs: annual property tax, insurance (vacancy policy if empty), HOA fees, minimum utilities, maintenance. These expenses are paid by the estate (by the appointed personal representative) and deductible from final gain. Regular physical monitoring required, particularly during hurricane season.
Manual articles for this step:
Step 6 — Sale with FIRPTA and FX transfer
If sale chosen, the sale proceeds like a standard seller journey, with some succession specifics. FIRPTA applies to the non-resident heir-seller at 15 % of sale price. The title company escrows the withholding until IRS clearance. The step-up basis at date of death reduces calculated gain. CAD conversion at the date of transfer to Canadian account.
Manual articles for this step:
Step 7 — Co-heirs and proceeds distribution
If multiple co-heirs, distribution follows the will (if U.S. will) or Canadian succession rules applied to U.S. asset (if Canadian will only). Co-heir disagreement possible: partition action (forces judicial sale), buyout among co-heirs, or co-ownership maintained. Net proceeds after FIRPTA, doc stamp, commission and probate fees distributed proportionally.
Manual articles for this step:
Common mistakes
- Not notifying the title company of the death, which can block subsequent operations.
- Leaving the property empty without vacancy insurance, voiding coverage on loss.
- Selling too soon before ancillary probate completion, making the deed challengeable.
- Not getting a date-of-death appraisal, losing step-up basis and increasing taxable gain.
- Ignoring succession-specific FIRPTA withholding and ending with a lower net than expected.
- Forgetting U.S. estate tax USD 60,000 non-resident threshold and 706-NA filing if U.S. value exceeds 60,000.
- Not activating QDOT for a Canadian surviving spouse, losing estate tax deferral.
Typical costs to expect
| Cost item | Typical range | Source |
|---|---|---|
| Florida probate attorney | USD 5,000 to 25,000 by complexity | FL Bar |
| Probate court fees | USD 400 to 1,200 | FL Clerk of Court |
| Date-of-death appraisal | USD 300 to 600 | Licensed FL appraisers |
| Vacancy insurance | + 25 to 75 % vs residential | FL practitioners |
| U.S. non-resident estate tax | 26 to 40 % above net USD 60,000 | IRC §2101 |
| Parallel Canadian probate if applicable | By province | QC notaries, ON attorneys |
Indicative timeline
First 72 hours securing, weeks 1-4 probate opening and FL attorney, months 1-6 asset collection and creditor publications, months 4-12 sale or hold decision, months 6-18 probate closure. Sale FIRPTA recovery 12-18 months after closing.
FAQ
Do I need probate in Florida if deceased lived in Canada?
Yes for the Florida asset specifically. It's an ancillary probate opened by a Florida attorney, in parallel with the main Canadian probate. The title company won't release title without Florida probate.
What if co-heirs disagree?
Three paths: amicable mediation, partition action (judicial procedure forcing sale), or buyout among co-heirs (one buys others at market value).
How does U.S. estate tax USD 60,000 apply to Canadians?
Non-resident threshold is USD 60,000 net U.S. assets. Above, progressive rate 26 to 40 %. Canada-U.S. treaty grants partial unified credit (Article XXIX-B of tax treaty) based on U.S. / worldwide assets ratio.
Can I rent the property during probate?
Yes with personal representative and co-heir authorization. Rental income reportable on 1040-NR and T776. Often impractical given uncertain probate duration.
Does step-up basis apply for Canada?
Not automatically. CRA recognizes date-of-death value as new cost base provided the estate is fiscally recognized (typically via rollover between surviving spouses or eligible beneficiaries).
Editorial team and essential disclaimer
Editorial team. This journey is written and reviewed by the canadaflorida.com editorial team. The authors are not licensed real estate brokers, attorneys, or tax practitioners. The journey relies on the primary sources (IRS, Florida Statutes, OSFI, CRA, Florida Realtors, NAR) cited in the manual articles it links to.
Essential disclaimer. This journey is educational. It is not real estate, legal, tax, or immigration advice. U.S. and Canadian rules evolve. For each step, consult the dedicated manual articles and a licensed professional in the relevant jurisdiction.